Ginny Jones receives $650 gross salary biweekly. Her income tax rate is 15%. Her group health plan contribution is $24.50 per pay period. She belongs to the company retirement plan, to which she contributes 6.5% of her earnings. She is also covered under Social Security benefits. Her current contribution is 7.65%.
If these items are all her deductions, what is her take-home pay per period? $
Ginny gets a $55 raise per pay period. If her health plan is unchanged, how much of the raise will she have to take home? $
436.02
Thank you so much
650 * 0.15 = _____ income tax
650 * 0.065 = ______ retirement
650 * 0.0765 = ______ Social Security
Add those three figures to 24.50. Subtract from 650 to find her take home pay.
To calculate Ginny's take-home pay per period, we need to deduct her income tax, group health plan contribution, retirement plan contribution, and Social Security contribution from her gross salary.
1. Calculate the income tax deduction:
Income tax deduction = (Gross salary) * (Income tax rate)
Income tax deduction = $650 * 15% = $97.50
2. Calculate the group health plan contribution deduction:
Group health plan deduction = $24.50
3. Calculate the retirement plan contribution deduction:
Retirement plan deduction = (Gross salary) * (Retirement plan contribution rate)
Retirement plan deduction = $650 * 6.5% = $42.25
4. Calculate the Social Security contribution deduction:
Social Security deduction = (Gross salary) * (Social Security contribution rate)
Social Security deduction = $650 * 7.65% = $49.73
Now, let's calculate Ginny's take-home pay per period:
Take-home pay = Gross salary - Income tax deduction - Group health plan deduction - Retirement plan deduction - Social Security deduction
Take-home pay = $650 - $97.50 - $24.50 - $42.25 - $49.73
Take-home pay = $436.02
Therefore, Ginny's take-home pay per period is $436.02.
To calculate how much of the $55 raise Ginny will take home, we need to deduct any additional deductions resulting from the raise:
1. Calculate the new income tax deduction:
New income tax deduction = (Gross salary + Raise) * (Income tax rate)
New income tax deduction = ($650 + $55) * 15% = $97.50
2. Calculate the additional amount deducted for retirement plan contribution:
Additional retirement plan deduction = (Raise) * (Retirement plan contribution rate)
Additional retirement plan deduction = $55 * 6.5% = $3.58
3. Calculate the additional amount deducted for Social Security contribution:
Additional Social Security deduction = (Raise) * (Social Security contribution rate)
Additional Social Security deduction = $55 * 7.65% = $4.21
Now, let's calculate the amount of the raise Ginny will take home:
Raise take-home amount = Raise - New income tax deduction - Additional retirement plan deduction - Additional Social Security deduction
Raise take-home amount = $55 - $97.50 - $3.58 - $4.21
Raise take-home amount = -$50.29
Since the calculated amount is negative, Ginny will not be able to take home any of the $55 raise.
97.5
42.25
+ 49.73
________
189.48 + 24.50 = 213.48 (650 - 213.48= 436.52) <<<< ANSWER ! Am I correct???