You are paid $15.60/hr. Your deductions are FICA (7.65%), federal tax withholding (11.15%), and state tax withholding (6.5%). You work 15 hr/wk and save 10% each week. How much do you save each month?
First, calculate the total amount earned per week:
$15.60/hr * 15 hr/wk = $234
Next, calculate the total amount deducted each week:
FICA: $234 * 7.65% = $17.87
Federal tax withholding: $234 * 11.15% = $26.09
State tax withholding: $234 * 6.5% = $15.21
Total deductions: $17.87 + $26.09 + $15.21 = $59.17
Now, calculate the amount saved each week:
$234 * 10% = $23.40
So, the net amount earned per week is:
$234 - $59.17 - $23.40 = $151.43
To calculate the total amount saved each month, multiply the weekly savings by the number of weeks in a month:
$23.40 * 4 = $93.60
Therefore, you save $93.60 each month.