Question

Will Brown, who pays weekly union dues of $3.00, earns $289 per week. His federal income tax is $39.13 and his FICA tax is 6.2%. He pays a 4% state income tax, a $15.00 annual city tax, and 2% of his pay to his retirement fund. What’s his net income for the week he pays the city tax?

Answer 1

Earnings $289

Less: Union dues $3
Fed. Income Tax $39.13
FICA $17.92 (6.2% of $289 = 0.062 x $289 = $17.92)
State Income tax $11.56 (4% of $289 = 0.04 x $289 = $11.56)
City tax $15.00
Retirement fund $5.78 (2% of $289 = 0.02 x $289 = $5.78)

Net Income = $196.61