Answer:
Net Income = $24,612.8
Explanation:
To calculate Jason's annual salary.
The following must be taken into consideration.
1. Federal Deduction
2. State Tax Deduction
3. Social security tax deduction
4. Medicare tax
Given that
Annual salary = $37,160
Jason's Monthly Salary = Annual Salary ÷ Number of Months in a year
Jason's Monthly Salary = $37,160 ÷ 12
Jason's Monthly Salary = $3096.67
Since, $234.00 will be removed from his monthly paycheck..
Remaining Value = $3096.67 - $234.00
Remaining Value = $2862.67
We'll calculate the aforementioned taxes on the remaining value.
1. Federal Deduction (15%)
= 15% * $2862.67
= 0.15 * $2862.67
= $429.4
2. State Tax Deduction (5.7%)
= 5.7% * $2862.67
= 0.057 * $2862.67
= $163.2
3. Social security tax deduction (6.2%)
= 6.2% * $2862.67
= 0.062 * $2862.67
= $177.5
4. Medicare Tax (1.45%)
= 1.45% * $2862.67
= 0.0145 * $2862.67
= $41.5
Total Monthly Deduction = $429.4 + $163.2 + $177.5 + $41.5 + $234
Total Monthly Deduction = $1,045.6
Yearly Deduction = 12 * $1,045.6
Yearly Deduction = $12,547.2
Net Income is then calculated as;
Annual Salary - Deduction
Net Income = $37,160 - $12,547.2
Net Income = $24,612.8
