Duc works for a salary of $2,200 per month. His computed hourly rate of pay is $13.75 per hour. Although Duc earns a salary, he
sometimes qualifies for overtime pay for special situations. For overtime hours, he earns 1½ times his regular computed hourly rate. Last month, he worked for 14 paid overtime hours. He has federal income tax withheld at the rate of 15%, social security tax at the rate of 6.2%, Medicare tax at the rate of 1.45%, and health insurance premiums of $85 per month. What was his net pay?
Net pay is take-home pay or pay after tax
so 2200 per month
assume that 2200 is salary without overtime counted
13.75 per hour
overtime=1 and 1/2 times regular so worked 14 overtime hours or 14 times 1 and 1/2 times 13.75=288.75
add to salary
2488.75
take taxes
so take 15% and 6.2% and 1.45% and $85,
so add the percents up and subtract
15+6.2+1.45=22.65%
subtract from 100 to find how much left
100-22.65=77.35% left
multiply this to total salary which is overtimepay+salary=2488.75
77.35%=0.7735
0.7735 times 2488.75=1925.05
then subtract health insurance premiums which is 85
1925.05-85=1840.05
his net pay was $1840.05
