You work a part-time job at $7.85/hr for 10 hours per week. Your deductions are FICA (7.65%), federal tax withholding (9.8%), and state tax withholding (5.5%). What is your net hourly wage?
To calculate your net hourly wage, you first need to calculate your total deductions.
Total deductions = FICA + federal tax withholding + state tax withholding
Total deductions = 7.65% + 9.8% + 5.5%
Total deductions = 23.95%
Next, subtract the total deductions from 100% to find your net percentage after deductions.
Net percentage after deductions = 100% - 23.95%
Net percentage after deductions = 76.05%
Finally, calculate your net hourly wage by multiplying your gross hourly wage by the net percentage after deductions.
Net hourly wage = $7.85 * 76.05%
Net hourly wage = $7.85 * 0.7605
Net hourly wage = $5.97
Therefore, your net hourly wage after deductions is $5.97.