Question

You are paid $5.75/hr at your part-time job delivering pizzas. You usually earn $1.50/pizza as a tip. Your deductions are FICA (7.65%), federal tax withholding (11.2%), and state tax withholding (7.1%). If you work 10 hours and deliver 3 pizzas/hr, what is your gross pay including tips?

Answer 1

By working 10 hours and delivering 3 pizzas/hr, the total income is calculated through,
total income = ($5.75/hr)(10 hr) + ($1.5/pizza)(3pizzas/h)(10 h)
= $102.5
The total amount of tax that needs to be paid is 25.95%. The gross pay is,
gross pay = ($102.5)(1 - 0.2595)
= $75.9.