Answer: Total deductions= 0.3245ab and Net pay= 0.6755ab
Step-by-step explanation:
Suppose, the pay rate= a dollar per hour
And hours worked= b hours
Gross earning= the pay rate x hours worked
Gross earning= ab
Deductions are:
Federal taxes= 20% of gross earnings= 20/100 x ab= 0.2ab dollars
State taxes= 6% of gross earning= 6/100 x ab= 0.06ab dollars
Social security deduction= 6.45% of gross earning= 6.45/100 x ab= 0.0645ab
So,
The total deduction= federal taxes + state taxes + social security deduction
The total deduction= 0.2ab + 0.06ab + 0.0645ab= 0.3245ab dollars
And
Net pay= gross earning – total deduction
Net pay= ab – 0.3245ab= 0.6755ab dollars
