Question

At his new job, Manuel expects to make about $37,850 per year. He is paid bi-weekly. 15% of his gross pay will be withheld for federal income tax; 4% for state income tax and 7.65% for Social Security and Medicare taxes. Calculate his net pay

Answer 1

Manuel earns $37,850 per year. Since he is paid bi-weekly (once in two weeks) and a year has 52 weeks, his gross payment is:

`(37850)/(26)=1455.77`

Now, let's add the percentages of each tax:

`15\text{\%}+4\text{\%}+7.65\text{\%}=26.65\text{\%}`

Calculating this percentage of his gross payment, we have:

`1455.77\cdot(26.65)/(100)=387.96`

Finally, to find his net pay, let's subtract the taxes from the gross payment:

`1455.77-387.96=1067.81`

His net payment is $1067.81