John worked 43 hours last week; his hourly rate is $9.00. He has the
following deductions, taken from his pay: Social Security tax at the rate
of 6.2%, Medicare tax at the rate of 1.45%, health insurance premiums
of $15.00 and 401(k) contributions of 5% of gross pay. John also has
federal income tax withheld at the rate of 10%. Federal taxes do not
apply to the 401(k) contribution.
Second, how much is John's total deductions?
NOTE: the first deduction you should calculate is the 401(k). then
when you are calculating federal income tax you will subtract 401(k)
total from the gross pay and use that as the number to calculate the
percentage for the 401(k). The rest of the deductions will use just the
normal gross pay amount.