Question

Laura makes 120000 a year. considering 20% income tax fica taxes and her healthcare cost of 156$ a month what does she net monthly?

Answer 1

Laura's net monthly income after income tax, FICA taxes, and healthcare cost deductions is $84,948.

Step-by-step explanation:

To calculate Laura's net monthly income, we need to deduct her income tax, FICA taxes, and healthcare cost from her annual salary.

First, let's calculate Laura's income tax. Assuming a 20% income tax rate, we can find her annual income tax by multiplying her annual salary by 20%: 120,000 * 0.20 = 24,000.

Next, let's calculate her FICA taxes. FICA taxes consist of Social Security and Medicare. Assuming Social Security is 6.2% and Medicare is 1.45%, we can calculate Laura's annual FICA taxes as follows: Social Security = 120,000 * 0.062 = 7,440, and Medicare = 120,000 * 0.0145 = 1,740. Adding these together, Laura's total annual FICA taxes are 7,440 + 1,740 = 9,180.

Finally, let's calculate her monthly healthcare cost. Given that her healthcare cost is $156 per month, her annual healthcare cost is 156 * 12 = 1,872.

To find Laura's net monthly income, we subtract her income tax, FICA taxes, and healthcare cost from her annual salary: 120,000 - 24,000 - 9,180 - 1,872 = 84,948.

So, Laura's net monthly income is approximately $84,948.