Question

Juanita has a part-time job that pays $12/hour and works about 50 hours every month. Her withholdings are social security (6.2%), medicare (1.45%), and federal income tax (10%). What is her approximate net pay? (Hint: Gross pay - deductions = net pay (take home pay))

1) $700
2) $600
3) $500
4) $100

Answer 1

Juanita's net pay is calculated by subtracting deductions for Social Security, Medicare, and federal income tax from her monthly gross pay of $600, resulting in an approximate net pay of $494.10, which is closest to the provided option 3) $500.

Step-by-step explanation:

To calculate Juanita's approximate net pay, we first need to determine her gross pay by multiplying her hourly rate by the number of hours she works per month. Juanita earns $12/hour and works about 50 hours every month. Therefore, her gross pay is:

50 hours * $12/hour = $600

Next, we calculate the deductions from her gross pay.

• Social Security deduction = 6.2% of $600 = $37.20
• Medicare deduction = 1.45% of $600 = $8.70
• Federal Income Tax = 10% of $600 = $60.00

Adding these deductions together gives us:

$37.20 (Social Security) + $8.70 (Medicare) + $60.00 (Federal Income Tax) = $105.90

Subtracting the total deductions from the gross pay provides the net pay:

$600 (gross pay) - $105.90 (total deductions) = $494.10 (net pay)

Therefore, Juanita's approximate net pay would be closest to option 3) $500.