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Sandra's gross pay is $52,000 a year. The state income tax is 3% of taxable wages, and she takes a married exemption for herself and her husband. Calculate her net pay.

User Olevegard
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Final answer:

Sandra's net pay is calculated by deducting Social Security, Medicare, state income, and federal taxes from her annual gross pay of $52,000. The total deductions amount to $13,338, resulting in a net pay of $38,662 per year.

Step-by-step explanation:

To calculate Sandra's net pay, we need to consider various deductions from her gross pay. Sandra's gross pay is $52,000 a year. From this amount, deductions for Social Security, Medicare, federal tax, and state income tax will be subtracted to determine her net pay. The deductions are as follows:

  • Social Security tax at 6.2% of the gross pay.
  • Medicare tax at 1.45% of the gross pay.
  • State income tax at 3% of taxable wages.
  • Federal tax, which we will assume to be 15% as per the reference context given, although it is not directly mentioned in Sandra's question.

Applying these deductions:

  • Social Security tax: $52,000 * 0.062 = $3,224
  • Medicare tax: $52,000 * 0.0145 = $754
  • State Income Tax: $52,000 * 0.03 = $1,560
  • Federal tax: $52,000 * 0.15 = $7,800

Total deductions are the sum of these taxes: $3,224 + $754 + $1,560 + $7,800 = $13,338.

Therefore, Sandra's net pay per year would be her gross pay minus these total deductions: $52,000 - $13,338 = $38,662.

User Malintha
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