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 $14.90 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.
To calculate Rhonda's take-home pay for her first check, we need to consider several factors including her hourly pay, tax deductions, and other withholdings. Let's break it down step-by-step:
Step 1: Calculate Gross Earnings
Rhonda's hourly rate is $14.90, and she will be paid biweekly for 80 hours. So, her gross earnings for the first check can be calculated as follows:
Gross Earnings = Hourly Rate x Hours Worked
= $14.90 x 80
= $1,192
Step 2: Calculate Federal Income Tax Withholding
To calculate federal income tax withholding, we need to consider Rhonda's filing status and allowances. According to the information provided, Rhonda is married with a child and claims an allowance of 3. We'll use the IRS withholding tables to determine the appropriate withholding amount.
Using the Married filing jointly status and 3 allowances, the estimated federal income tax withholding for Rhonda's gross earnings can be calculated. However, please note that this calculation might not be accurate, as it is only an estimation. The final tax amount may vary depending on factors like deductions, credits, and other personal circumstances.
Step 3: Calculate Social Security and Medicare Taxes
The tax rates for Social Security and Medicare are given at 6.2% and 1.45%, respectively. The Social Security tax is only applied on the first $118,500 of income. So, the calculations will be as follows:
Social Security Tax = (Gross Earnings x Social Security Tax Rate)
= (Gross Earnings x 6.2%)
= ($1,192 x 6.2%)
Medicare Tax = (Gross Earnings x Medicare Tax Rate)
= (Gross Earnings x 1.45%)
= ($1,192 x 1.45%)
Step 4: Calculate Total Taxes Withheld
To calculate the total taxes withheld, we need to add the federal income tax withholding, Social Security tax, and Medicare tax amounts calculated in the previous steps.
Total Taxes Withheld = Federal Income Tax Withholding + Social Security Tax + Medicare Tax
Step 5: Calculate Net Pay
Lastly, to calculate Rhonda's take-home pay, we need to subtract the total taxes withheld from her gross earnings.
Net Pay = Gross Earnings - Total Taxes Withheld
Please note that this calculation doesn't consider other deductions like health insurance or retirement contributions, which may affect Rhonda's take-home pay.
To calculate Rhonda Brennan's take-home pay for her first check, we need to consider several factors, including her gross pay, taxes, and deductions. Here's how you can arrive at her take-home pay:
Step 1: Calculate Gross Pay
Rhonda's gross pay can be calculated by multiplying her hourly rate by the number of hours she worked in the pay period. Since she is paid biweekly for 80 hours, the calculation would be:
Gross Pay = Hourly Rate * Number of Hours
Gross Pay = $14.90 * 80 = $1,192
Step 2: Calculate Taxes
To calculate the taxes deducted from Rhonda's paycheck, we need to consider Social Security and Medicare taxes.
Social Security Tax:
The Social Security tax rate is 6.2% on the first $118,500 of earnings. Since Rhonda's annual salary is not provided, we'll assume that she earns less than $118,500 per year. Therefore, her Social Security tax can be calculated by multiplying her gross pay by 6.2%:
Social Security Tax = Gross Pay * Social Security Tax Rate
Social Security Tax = $1,192 * 0.062 = $73.98
Medicare Tax:
The Medicare tax rate is 1.45% on all earnings. To calculate the Medicare tax deducted from Rhonda's paycheck, we can use the following formula:
Medicare Tax = Gross Pay * Medicare Tax Rate
Medicare Tax = $1,192 * 0.0145 = $17.26
Step 3: Calculate Withholding
To determine Rhonda's federal income tax withholding, we need to consider her filing status, number of allowances, and the tax brackets applicable to her income. However, the specific tax brackets and information on her income are not provided in the question. Therefore, we can only provide a general method for calculating federal income tax withholding.
To determine federal income tax withholding, we need to refer to the IRS Publication 15 instructions or consult a tax professional. The IRS provides withholding tables that are based on an individual's filing status, allowance claims, and income. By using these tables, you can find the appropriate tax withholding amount based on Rhonda's circumstances.
Step 4: Calculate Take-Home Pay
To calculate Rhonda's take-home pay, we need to subtract the taxes and any other deductions from her gross pay:
Take-Home Pay = Gross Pay - Taxes - Other Deductions
Since the information provided does not include other deductions, we'll subtract only the taxes:
Take-Home Pay = Gross Pay - Social Security Tax - Medicare Tax
Take-Home Pay = $1,192 - $73.98 - $17.26 = $1,100.76
Therefore, Rhonda Brennan's take-home pay for her first check would be $1,100.76.