2. You are paid $13/hr at your part-time job. Your deductions are FICA (7.65%) and federal tax (10%). Your travel expenses are $8.50 per day worked. You work for 20 hours over a 4-day
period of time. What is your net income after travel expenses?
Net income:
Net income before deductions:
20 hours x $13/hr = $260
Deductions:
FICA: 7.65% of $260 = $19.83
Federal tax: 10% of $260 = $26
Total deductions: $19.83 + $26 = $45.83
Net income after deductions: $260 - $45.83 = $214.17
Total travel expenses over 4 days: $8.50/day x 4 days = $34
Net income after travel expenses: $214.17 - $34 = $180.17
Therefore, your net income after travel expenses is $180.17.