Question

Jason was a recent graduate from a university program with a BS in Medical Technology. He will begin a position at the local hospital with an annual salary $37,160 (gross). His federal income tax rate is 15%. His state tax rate is 5.7%. His social security tax is 6.2% and his Medicare tax rate is 1.45%. He will have $234.00 taken from his monthly paycheck for life and health insurance before the taxes are taken from his check.

What is Jason’s net annual salary? Show your steps or logic for your answer. Submit your answer in the textbox below.

Answer 1

Net Income = $24,612.8

Step-by-step explanation:

To calculate Jason's annual salary.

The following must be taken into consideration.

1. Federal Deduction

2. State Tax Deduction

3. Social security tax deduction

4. Medicare tax

Given that

Annual salary = $37,160

Jason's Monthly Salary = Annual Salary ÷ Number of Months in a year

Jason's Monthly Salary = $37,160 ÷ 12

Jason's Monthly Salary = $3096.67

Since, $234.00 will be removed from his monthly paycheck..

Remaining Value = $3096.67 - $234.00

Remaining Value = $2862.67

We'll calculate the aforementioned taxes on the remaining value.

1. Federal Deduction (15%)

= 15% * $2862.67

= 0.15 * $2862.67

= $429.4

2. State Tax Deduction (5.7%)

= 5.7% * $2862.67

= 0.057 * $2862.67

= $163.2

3. Social security tax deduction (6.2%)

= 6.2% * $2862.67

= 0.062 * $2862.67

= $177.5

4. Medicare Tax (1.45%)

= 1.45% * $2862.67

= 0.0145 * $2862.67

= $41.5

Total Monthly Deduction = $429.4 + $163.2 + $177.5 + $41.5 + $234

Total Monthly Deduction = $1,045.6

Yearly Deduction = 12 * $1,045.6

Yearly Deduction = $12,547.2

Net Income is then calculated as;

Annual Salary - Deduction

Net Income = $37,160 - $12,547.2

Net Income = $24,612.8

Answer 2

37160/12=3096.67
3096.67-234=2862.67
2862.67*0.85 (1-0.15)=2433.27
2433.27*0.938 (1-0.062)=2282.41
2282.41*0.9855 (1-0.0145)=2249.32
The annual salary is 2249.32*12=$26991.78.