Question

PLEASE HELP!!! you work a part-time job earning 6.80/hr with tips that average 2.30/hr you work 20 hr/wk and your deductions are fica 7.65% federal tax withholding 8.95% percent and state tax withholding 6.1% how much are you allowed in housing expenses per month

Answer 1

Answer: $ 575.13


Explanation:

1) First calculate your gross pay:

Wage: 6.8 $ / h × 20 h / w × 4.3 w/ month = 548.8 $ / month

Tips: 2.30 $ / h × 20 h / w × 4.3 w / month = 197.8 $ / month


Groos pay = 548.8 $ / month + 197.8 $ / month = 746.6 $ / month

2) Calculate the deductions:

Withholding = gross pay × percent rate

FICA withholding = $ 746.6 × 7.65% =  $ 57.11

Federal tax withholding = $ 746.6 × 8.95% = $ 68.82

State tax withholding = $ 746.6 × 6.1% = $ 45.54

Total withholding = $ 57.11 + $ 68.82 + $ 45.54 = $ 171.47

3) Caculate the difference

Available for house expenses = gross pay - deductions = % 746.6 - $ 171.47 = $ 575.13 per month