Question

Alex earns $18 per hour at his job as a store clerk and is paid monthly. He worked 140 hours this month. His most recent paycheck includes the following deductions: FICA $180.00 Federal income tax $215.00 State income tax $62.00 Health insurance $72.89 Retirement savings $50.00 Considering his deductions, what percentage of his gross pay did Alex take home?

Answer 1

Alex's gross pay for the month is $18/hour x 140 hours = $2520.

The total deductions from his paycheck are:

$180.00 (FICA) + $215.00 (Federal income tax) + $62.00 (State income tax) + $72.89 (Health insurance) + $50.00 (Retirement savings) = $579.89

So Alex's net pay (take-home pay) is:

$2520 (gross pay) - $579.89 (deductions) = $1940.11

To find the percentage of his gross pay that he took home, we can divide his net pay by his gross pay and multiply by 100:

($1940.11 / $2520) x 100 = 77.06%

Therefore, Alex took home 77.06% of his gross pay after deductions.