Question

ou 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

Explanation:

Firstly, just calculate how much money you earn:

40 * 10.25 = $410

Your transportation expenses = 5.25 * 5 = $26.25

Your lunch expenses = 3.85 * 5 = $19.25

Expenses for black slacks = $19.95

FICA = 7.65/100 * 410 (money you earned) = $31.365

Federal withholding = 15/100 * 410 = $61.5

State withholding = 10/100 * 410 = $41

Your discretionary income = 410 - (26.25 + 19.25 + 19.95 + 31.365 + 61.5 + 41) = $210.69