Question

Juanita has a part-time job that pays $12/hour and works about 75 hours every month. Her withholdings are Social Security (4.2%), Medicare (3.45%) and federal income tax (14%). What is her approximate net pay?

Answer 1

Juanita's approximate net pay is $705.15 by calculating her monthly gross pay of $900 and subtracting the Social Security, Medicare, and federal income tax deductions which total $194.85.

Step-by-step explanation:

To calculate Juanita's net pay, we must first determine her gross monthly pay and then subtract the withholdings for Social Security, Medicare, and federal income tax. Given that Juanita works 75 hours each month at $12 per hour, her gross monthly pay is 75 hours × $12/hour = $900.

Now, let's calculate the deductions based on her gross pay:

• Social Security at 6.2% of $900 is $55.80.
• Medicare at 1.45% of $900 is $13.05.
• Federal income tax at 14% of $900 is $126.

Adding up these deductions, we have $55.80 + $13.05 + $126 = $194.85.

To determine her net pay, we subtract the total deductions from her gross pay: $900 - $194.85 = $705.15.

Therefore, Juanita's approximate net pay is $705.15 per month.

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