Question

A college student, Trey works part-time for an annual salary of $13,500 a year. Calculate his yearly taxes below.Gross Monthly Income $____Monthly Federal Income Tax(11.6%) $____Monthly Social Security (FICA (6.2%) $____Monthly Medicare (1.45%) $____Monthly State Tax (4%) $____Monthly local Tax (0.1%) $____Total Monthly Deductions $____Jamals Net Monthly Income $_____

Answer 1

Given:

Annual Salary = $13,500

Let's calculate his yearly taxes below.

• 1. Gross monthly income.

To find the gross monthly income, apply the formula below:

`\begin{gathered} Gross=\frac{Annual\text{ salary}}{12}| \\ \\ \text{Gross = }(13500)/(12)=1125 \end{gathered}`

The gross monthly income is $1,125

• 2. Monthly Federal Income Tax (11.6%):

To find the monthly Federal income tax which is 11.6% of monthly income, we have:

`\begin{gathered} \text{Monthly federal income tax = 11.6\% of }Monthly\text{ income} \\ \\ \text{Monthly federal income tax = }(11.6)/(100)\ast1125=130.50 \end{gathered}`

The monthly Federal income tax is $130.50

• 3. Monthly Social Security (FICA (6.2%)):

`\begin{gathered} Monthly\text{ Social Security = 6.2\% of Monthly income} \\ \\ Monthly\text{ Social Security = }(6.2)/(100)\ast1125=69.75 \end{gathered}`

The Monthly Social Security is $69.75

• 4. ,Monthly Medicare (1.45%)

`\begin{gathered} \text{Monthly Medicare = 1.45\% of monthly income} \\ \\ \text{Monthly Medicare = }(1.45)/(100)\ast1125=\text{ 16.31} \end{gathered}`

The Monthly Medicare is $16.31

• 5. Monthly State Tax (4%):

`\begin{gathered} \text{Monthly State Tax = 4\% of Monthly income} \\ \\ \text{Monthly State Tax = }(4)/(100)\ast1125=45 \end{gathered}`

The Monthlys State Tax is $45

• 6. ,Monthly Local Tax (0.1%):

`\begin{gathered} \text{Monthly Local Tax = 0.1\% of Monthly income} \\ \\ \text{Monthly Local Tax = }(0.1)/(100)\ast1125\text{ = }1.125 \end{gathered}`

The Monthly Local Tax is $1.125

• 7. Total Monthly deductions:

To find the Total Monthly Deductions, sum up all the monthly taxes.

We have:

Total Monthly deductions = $130.50 + $69.75 + $16.31 + $45 + $1.125 = $262.685

Therefore, the total monthly deductions is = $262.685

8. Net Monthly Income:

To find the Net Monthly Income, subtract the Total Monthly Deductions from the Gross Monthly income.

We have:

Net Monthly Income = Gross Monthly Income - Total Monthly Deductions

= $1125 - $262.685 = $862.315

Therefore, the Net Monthly Income is $862.315

ANSWER:

Gross Monthly Income = $1,125

Monthly Federal Income Tax(11.6%) = $130.50

Monthly Social Security (FICA (6.2%) = $69.75

Monthly Medicare (1.45%) = $16.31

Monthly State Tax (4%) = $45

Monthly local Tax (0.1%) = $1.125

Total Monthly Deductions = $262.685

Net Monthly Income = $862.315