Question

andres salary is 59,800 per year he paid bi-weekly. Andres learns that 15% of his gross pay will be withheld of federal income tax, 4% for state income tax and 7.65% for Social Security and Medicare taxes, Calculate his net pay and how much he will pay in taxes each paycheck.part A. Convert the annual pay to biweekly.part B how much money will he pay in taxes each paycheck?part C what is the net pay

Answer 1

Andres salary is $59,800 per year.

He is paid bi-weekly. (bi-weekly means 2 times in a week)

The taxes are as follow

Federal income tax = 15%

State income tax = 4%

Social Security and Medicare taxes = 7.65%

Part A. Convert the annual pay to bi-weekly.

We know that there are 52 weeks in a year and bi-weekly means 2 times in a week so

`bi-weekly\: pay=(\$59,800)/(2*52)=(\$59,800)/(104)=\$575`

Therefore, the bi-weekly salary of Andres is $575.

Part B. How much money will he pay in taxes each paycheck?

`\begin{gathered} Federal\: income\: tax=15\%\: of\: \$575=(15)/(100)*\$575=\$86.25 \\ State\: income\: tax=4\%\: of\: \$575=(4)/(100)*\$575=\$23 \\ Social\: Security\: tax=7.65\%\: of\: \$575=(7.65)/(100)*\$575=\$43 \end{gathered}`

Now add up the amount of taxes

`Total\: taxes=\$86.25+\$23+\$44=\$153.25`

Therefore, he will pay $153.25 in taxes each paycheck.

Part C. What is the net pay?

The net pay is the pay after deducting the taxes

So, subtract the total taxes from the gross pay

`\begin{gathered} Net\: Pay=Gross\: Pay-Total\: taxes \\ Net\: Pay=\$575-\$153.25 \\ Net\: Pay=\$421.75 \end{gathered}`

Therefore, the net pay is $421.75.