Question

Given the pay rate and hours worked, determine the gross earnings, Federal taxes (assuming 18% of gross earnings), state taxes (assuming 4% of gross earnings), social security deduction (assuming 7.05% of gross earnings), total deductions, and net pay. This person worked 30 hours at a rate of $7.50 per hour.

Answer 1

Net Pay = $159.64

Step-by-step explanation:

given data

Federal taxes = 18% of gross earnings

state taxes = 4% of gross earnings

social security deduction = 7.05% of gross earnings

solution

we get here first Gross Income that is

Gross Income = $7.50 × 30

Gross Income = $225

and Federal Tax will be

Federal Tax = 18% × $225

Federal Tax = $40.50

and

State Tax will be

State Tax = 4% × $225

State Tax = $9.00

and

Social Security will be

Social Security = 7.05% × $225

Social Security = $15.86

so

Total Deduction will be as

Total Deduction = Federal Tax + State Tax + Social Security

Total Deduction = $40.50 + $9.00 + $15.86

Total Deduction = $65.36

and

Net Pay = Gross Income - Total Deduction

Net Pay = $225 - $65.36

Net Pay = $159.64