Question

You work at the peacock blue store 40 hours/week over five days at a rate of $10.25/hour. Deductions are fica (7.65%), federal withholding (15%), and state withholding (10%). Your expenses are transportation at $5.25/day, lunch at $3.85/day, and black slacks required for work at $19.95. How much is your discretionary income for one week?

Answer 1

210.69 is the answer.

Sorry for not explaining my work, in a bit of a hurry. I had this question back when i was in school.

Hope this helps & good luck. :)

Answer 2

Weekly salary =
`40*10.25=410`

Deductions are as follows:

FICA = 7.65% , amount becomes
`0.0765*410=31.365`

Federal withholding =
`0.15*410=61.5`

State withholding =
`0.10*410=41`

Hence, total deductions are =
`31.365+61.5+41=133.865`

Daily transportation and lunch costs
`5.25+3.85=9.1` per day

Weekly expense for food and transportation =
`9.1*5=45.5`

Cost of black slacks = $19.95

So, total expenses including deductions are =
`133.865+45.50+19.95=199.315`

Now, the weekly discretionary income is =
`410-199.315` = $210.685 ≈ $210.69

Hence, the answer is $210.69.