An employee at a homemade wooden toy store earned $860 over the past week. The employee needs to pay 14% for Federal Income Tax and 3% for State Income Tax, both on the initial amount he earned. How much will the employee earn after paying both taxes?
860 * 0.14 = 120.40
860 * 0.03 = 25.80
sum of taxes = 146.20
860.00 - 146.20 = 713.80
860(1 - 0.14 - 0.03) = ____
To calculate the amount the employee will earn after paying both taxes, we need to subtract the total tax amount from the initial amount earned.
First, let's calculate the Federal Income Tax:
Federal Income Tax = (14/100) * $860
Federal Income Tax = $120.4
Next, let's calculate the State Income Tax:
State Income Tax = (3/100) * $860
State Income Tax = $25.8
Now, let's subtract both taxes from the initial amount earned:
Amount earned after paying taxes = $860 - $120.4 - $25.8
Amount earned after paying taxes = $713.8
Therefore, the employee will earn $713.8 after paying both Federal and State Income Taxes.
To calculate how much the employee will earn after paying both taxes, you will need to subtract the amounts for both the Federal and State Income taxes from the initial amount earned.
First, let's calculate the Federal Income Tax:
Step 1: Convert the percentage to decimal form:
14% = 14/100 = 0.14
Step 2: Calculate the Federal Income Tax amount:
Federal Income Tax = 0.14 * $860
Next, let's calculate the State Income Tax:
Step 3: Convert the percentage to decimal form:
3% = 3/100 = 0.03
Step 4: Calculate the State Income Tax amount:
State Income Tax = 0.03 * $860
Finally, subtract both tax amounts from the initial earnings to find the final amount:
Final earnings = Initial earnings - Federal Income Tax - State Income Tax
Now, let's calculate the final earnings:
Final earnings = $860 - (Federal Income Tax + State Income Tax)
Substituting the calculated values for the tax amounts:
Final earnings = $860 - (0.14 * $860 + 0.03 * $860)
Calculating the tax amounts:
Final earnings = $860 - ($120.4 + $25.8)
Final earnings = $860 - $146.2
Final earnings = $713.8
Therefore, the employee will earn $713.8 after paying both the Federal and State Income taxes.