Question

Your part-time job pays $8.34/hr, and your deductions are FICA (7.65%), federal tax withholding (10.25%), and state tax withholding (7.15%). You work for 12 hours. What is your net hourly wage?

a) $5.72
b) $6.48
c) $7.12
d) $7.94

Answer 1

To calculate the net hourly wage, subtract the deductions (FICA, federal tax withholding, and state tax withholding) from the gross hourly wage. The net hourly wage is the amount you actually receive per hour after deductions.

Step-by-step explanation:

To calculate the net hourly wage, we need to subtract the deductions (FICA, federal tax withholding, and state tax withholding) from the gross hourly wage. Let's calculate each deduction:

1. FICA deduction: Multiply the gross hourly wage ($8.34/hr) by 7.65% (0.0765) to find the FICA deduction. Deduct this amount from the gross hourly wage.
2. Federal tax withholding: Multiply the gross hourly wage ($8.34/hr) by 10.25% (0.1025) to find the federal tax withholding. Deduct this amount from the gross hourly wage.
3. State tax withholding: Multiply the gross hourly wage ($8.34/hr) by 7.15% (0.0715) to find the state tax withholding. Deduct this amount from the gross hourly wage.

The net hourly wage is the result after deducting all the deductions from the gross hourly wage. This will give us the amount you actually receive per hour after deductions.