You are paid $8.25/hour. You work 35 hours/week for 3 weeks. Your involuntary deductions are FICA (7.65%), federal withholding (13%), and state withholding (9%). How much is your realized income?

Question

(1 point)
Responses

$203.13
$203.13

$866.25
$866.25

$288.75
$288.75

$609.39

Answer 1

To calculate your realized income, we need to follow these steps:

1. Calculate Total Earnings: \[ \text{Total Earnings} = \text{Hourly Rate} \times \text{Hours per Week} \times \text{Number of Weeks} \] \[ \text{Total Earnings} = 8.25 , \text{USD/hour} \times 35 , \text{hours/week} \times 3 , \text{weeks} \] \[ \text{Total Earnings} = 8.25 \times 35 \times 3 = 866.25 , \text{USD} \]

2. Calculate Total Deductions:

   • FICA (7.65%): \[ \text{FICA} = 866.25 \times 0.0765 = 66.24 , \text{USD} \quad \text{(rounded to 2 decimal places)} \]
   • Federal Withholding (13%): \[ \text{Federal Withholding} = 866.25 \times 0.13 = 112.60 , \text{USD} \quad \text{(rounded to 2 decimal places)} \]
   • State Withholding (9%): \[ \text{State Withholding} = 866.25 \times 0.09 = 77.96 , \text{USD} \quad \text{(rounded to 2 decimal places)} \]

3. Total Deductions: \[ \text{Total Deductions} = \text{FICA} + \text{Federal Withholding} + \text{State Withholding} \] \[ \text{Total Deductions} = 66.24 + 112.60 + 77.96 = 256.80 , \text{USD} \]

4. Calculate Realized Income: \[ \text{Realized Income} = \text{Total Earnings} - \text{Total Deductions} \] \[ \text{Realized Income} = 866.25 - 256.80 = 609.45 , \text{USD} \quad \text{(rounded to 2 decimal places)} \]

Since the options provided in your question might have rounded values, let's return to see if it's accounted for. The closest value to this is $609.39.

So, the correct answer is $609.39.