Question

Given the pay rate and hours worked(8.50, 38.0) determine the gross earnings, Federal taxes (assuming 15% of gross earnings), state taxes (assuming 5% of gross earnings), local taxes (assuming 2% of gross earnings), social security deduction (assuming 7.65% of gross earnings), total deductions, and net pay.

Answer 1

$8.50 x 38 = $323
$323 x .15 = $48.45
$323 x .05= $16.15
$323 x .02 = $6.46
$323 x .0765= $24.71

$48.45 + $16.15 + $6.46 + $24.71= $95.77 deductions

$323 - $95.77 = $227.23 net pay

Answer 2

Gross Earning is $323

Total deduction is $95.77 and

Net pay is $227.23

Explanation:

Given the pay rate and hours worked(8.50, 38.0)

Pay rate = $8.50 per hour

Number of hours worked = 38.0 hours

Total pay in 38 hours (Gross Earning) = 38 x 8.5 = $323

Now we find deduction of all taxes

Federal taxes (assuming 15% of gross earnings)

Therefore, Federal taxes = 0.15 x 323 = $48.45

State taxes (assuming 5% of gross earnings)

Therefore, State taxes = 0.05 x 323 = $16.15

Local taxes (assuming 2% of gross earnings)

Therefore, Local taxes = 0.02 x 323 = $6.46

Social security deduction (assuming 7.65% of gross earnings)

Therefore, Social security deduction = 0.0765 x 323 = $24.71

Total deduction = Federal taxes + State taxes + Local taxes + Social security deduction

Total deduction = 48.45+16.15+6.46+24.71 = $95.77

Net Pay = Gross Earning - Total deduction

Net Pay = $323 - $95.77 = $227.23

Thus, Gross Earning is $323, Total deduction is $95.77 and Net pay is $227.23