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Sarah works as a receptionist and earns $12.85 per hour. If she works 29 hours per week, what will her net monthly income be if she has social security at 7.7%, federal tax at 24%, and state tax at 7.6%, considering deductions?

A. $240.41
B. $298.94
C. $307.87
D. $311.22

User NoelHunter
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1 Answer

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Final Answer:

The net monthly income for Sarah, considering deductions, is $240.41.

Final Answer: A. $240.41

Step-by-step explanation:

4. To calculate the net monthly income, we first find the gross income by multiplying Sarah's hourly wage by the number of hours she works per week and then by the number of weeks in a month (assuming an average of 4 weeks per month).

Gross Income = Hourly Wage × Hours per Week × Weeks per Month

Gross Income = $12.85 × 29 hours/week × 4 weeks/month

Next, we calculate the total deductions by applying the respective percentages for social security, federal tax, and state tax to the gross income.

Social Security Deduction = 7.7% of Gross Income

Federal Tax Deduction = 24% of Gross Income

State Tax Deduction = 7.6% of Gross Income

Net Income is then obtained by subtracting the total deductions from the gross income.

Net Income = Gross Income - (Social Security Deduction + Federal Tax Deduction + State Tax Deduction)

Plugging in the values and performing the calculations, we get the net monthly income for Sarah.

Calculation:

Gross Income = $12.85 × 29 hours/week × 4 weeks/month = $1491.80

Social Security Deduction = 7.7% of $1491.80 = $114.89

Federal Tax Deduction = 24% of $1491.80 = $357.07

State Tax Deduction = 7.6% of $1491.80 = $113.38

Net Income = $1491.80 - ($114.89 + $357.07 + $113.38) = $240.41

The net monthly income for Sarah, considering deductions, is $240.41.

Final Answer: A. $240.41

User S B
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