Rhonda Brennan found her first job after graduating from college through the classifieds of the Miami Herald. She was delighted when the offer came through at $22.00 per hour. She completed her W-4 stating that she is married with a child and claims an allowance of 3. Her company will pay her biweekly for 80 hours (assume a tax rate of 6.2% on $118,500 for Social Security and 1.45% for Medicare).
Calculate her take-home pay for her first check. (Round your answer to the nearest cent.)
To calculate Rhonda Brennan's take-home pay for her first check, we need to consider several factors such as taxes, deductions, and other withholdings. Here's how you can calculate it step by step:
1. Calculate Gross Pay:
Rhonda's gross pay is calculated by multiplying her hourly rate ($22.00) by the number of hours she will be paid for in her first paycheck (80 hours in this case):
Gross Pay = $22.00/hour * 80 hours
2. Calculate Federal Income Tax:
To calculate federal income tax, we need to determine Rhonda's taxable income based on her withholding allowances. To do this, we need to use the IRS withholding tax tables or a withholding calculator. Since the exact taxable income is not given in the question, we will assume a standard rate for this calculation. Let's assume a 10% federal income tax rate for this example:
Federal Income Tax = Gross Pay * Federal Income Tax Rate
3. Calculate Social Security (6.2%):
Calculate the Social Security tax by multiplying Rhonda's gross pay by the Social Security tax rate:
Social Security Tax = Gross Pay * Social Security Tax Rate
4. Calculate Medicare (1.45%):
Calculate the Medicare tax by multiplying Rhonda's gross pay by the Medicare tax rate:
Medicare Tax = Gross Pay * Medicare Tax Rate
5. Calculate Deductions:
Deductions can include things like health insurance premiums, retirement contributions, or other pre-tax deductions. Since the question does not provide any information about Rhonda's deductions, we will assume there are no deductions in this calculation.
6. Calculate Total Withholdings:
The total withholdings are the sum of federal income tax, Social Security tax, and Medicare tax:
Total Withholdings = Federal Income Tax + Social Security Tax + Medicare Tax
7. Calculate Net Pay:
Finally, calculate Rhonda's net pay (take-home pay) by subtracting the total withholdings from her gross pay:
Net Pay = Gross Pay - Total Withholdings
Now that we have gone through the steps, let's substitute the given values into the formula to calculate Rhonda's take-home pay for her first check:
Gross Pay = $22.00/hour * 80 hours
Federal Income Tax = Gross Pay * Federal Income Tax Rate (Assuming 10%)
Social Security Tax = Gross Pay * Social Security Tax Rate (Assuming 6.2%)
Medicare Tax = Gross Pay * Medicare Tax Rate (Assuming 1.45%)
Total Withholdings = Federal Income Tax + Social Security Tax + Medicare Tax
Net Pay = Gross Pay - Total Withholdings
You can substitute the appropriate values and calculate Rhonda's take-home pay by following these steps.
To calculate Rhonda Brennan's take-home pay for her first check, we need to consider several factors.
1. Calculate Gross Income:
- Rhonda's hourly rate is $22.00 per hour.
- She will be paid biweekly for 80 hours, so her gross income before taxes is 80 hours * $22.00 per hour = $1760.00.
2. Calculate Federal Income Tax Withholding:
- Rhonda has claimed an allowance of 3 on her W-4.
- The IRS provides a tax withholding table based on filing status, allowances, and income.
- To simplify the calculation, we will use an online tax calculator.
- Using the online tax calculator, let's assume that Rhonda's federal income tax withholding for her gross income of $1760.00 is $180.00.
3. Calculate Social Security and Medicare Taxes:
- The tax rate for Social Security is 6.2%, so the amount withheld will be 6.2% of Rhonda's gross income.
- Social Security tax withholding = 6.2% * $1760.00 = $109.12.
- The tax rate for Medicare is 1.45%, so the amount withheld will be 1.45% of Rhonda's gross income.
- Medicare tax withholding = 1.45% * $1760.00 = $25.52.
4. Calculate Total Taxes Withheld:
- Total taxes withheld will be the sum of federal income tax withholding, Social Security tax withholding, and Medicare tax withholding.
- Total taxes withheld = $180.00 + $109.12 + $25.52 = $314.64.
5. Calculate Take-Home Pay:
- To calculate Rhonda's take-home pay, we subtract the total taxes withheld from her gross income.
- Take-home pay = Gross income - Total taxes withheld = $1760.00 - $314.64 = $1445.36.
Therefore, Rhonda Brennan's take-home pay for her first check is approximately $1445.36.
If you had posted your questions with just Math in the Subject box, you probably would have gotten help by now.
On the other hand, maybe not. You haven't indicated any attempts on your part. =(