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Nolan works part-time at a movie theater making his state’s minimum wage of $10.10 per hour. He receives a paycheck every 2 weeks. If he works 20 hours over the course of the first two weeks in February, how much should he expect to have taken out of his paycheck for payroll taxes?

User Davymartu
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Nolan, working 20 hours at $10.10/hour in February, can expect around $30.75 withheld for payroll taxes in the first two weeks, assuming a 15% income tax withholding and considering standard Social Security and Medicare rates.

To calculate the amount of payroll taxes withheld from Nolan's paycheck, we need to consider the different taxes involved and his gross pay for the two weeks:

1. Gross Pay:

* Hours worked: 20

* Hourly wage: $10.10

* Gross pay = Hours worked * Hourly wage = 20 hours * $10.10/hour = $202.00

2. Payroll Taxes:

* Federal Income Tax: Withholding varies depending on filing status and allowances claimed on the W-4 form. We'll assume a 15% withholding rate for this example.

* Social Security Tax: 6.2% of gross pay up to the Social Security tax cap ($160,200 for 2023). Since Nolan's earnings are below the cap, his Social Security tax will be: 6.2% * $202.00 = $12.52

* Medicare Tax: 1.45% of gross pay with no income limit. Medicare tax for Nolan will be: 1.45% * $202.00 = $2.93

3. Total Payroll Taxes Withheld:

Federal Income Tax + Social Security Tax + Medicare Tax = $15.30 + $12.52 + $2.93 = $30.75

Therefore, Nolan can expect to have approximately $30.75 withheld from his paycheck for payroll taxes in the first two weeks of February.

User Dietmar
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