Question

Ryan earns $32,600 a year. He pays 21% of his gross income for federal, state, and local taxes. He is taxed at the FICA rate of 7.65%. He has another 4% of his income withheld for personal deductions. What is his net pay for the year?

Answer 1

$22,832.47

Explanation:

$32,600.00 × 21% = $6,846.00

$32,600.00 - $6,846.00 = $25,754.00

$25,754.00 × 7.65% = $1,917.18

$25,754.00 - $1,917.18 = $23,783.82

$23,783.82 × 4% = $951.35

$23,783.82 - $951.35 = $22,832.47