You work a part-time job at $7.85/hr per 8. Your deductions are FICA (7.65%), federal tax withholding (9.8%), and state tax withholding (5.5%). What is your net hourly wage
No problem!
Your gross weekly pay would be:
$7.85/hr * 10 hours/week = $78.50/week
To calculate your total deductions, we first need to find your gross annual income from this part-time job:
$7.85/hr * 10 hours/week * 52 weeks/year = $4,090.40/year
FICA deductions:
7.65% * $4,090.40 = $312.87
Federal tax withholding:
9.8% * $4,090.40 = $401.79
State tax withholding:
5.5% * $4,090.40 = $224.97
Total deductions:
$312.87 + $401.79 + $224.97 = $939.63
So your net annual income from this part-time job would be:
$4,090.40 - $939.63 = $3,150.77
To find your net hourly wage, we divide your net annual income by the number of hours worked in a year:
$3,150.77 / (10 hours/week * 52 weeks/year) = $6.05/hour
Therefore, your net hourly wage after deductions is $6.05.
First, we need to calculate the total amount of deductions:
7.65% + 9.8% + 5.5% = 23.95%
This means that 23.95% of your gross hourly wage is being deducted. To find your net hourly wage, we need to subtract this amount from your gross hourly wage:
100% - 23.95% = 76.05%
So your net hourly wage is:
$7.85 * 0.7605 = $5.97
Therefore, your net hourly wage after deductions is $5.97.
I meant $7.85/hr for 10 hours per week
To calculate your net hourly wage, you need to subtract the deductions from your gross hourly wage.
First, let's find your gross hourly wage. You mentioned that you earn $7.85 per hour.
Next, calculate FICA deductions. FICA (Federal Insurance Contributions Act) is composed of Social Security tax and Medicare tax, which is 7.65% of your gross income.
To find FICA deductions, multiply your gross hourly wage by 7.65%:
FICA deductions = 7.65% * $7.85
Next, calculate federal tax withholding deductions, which is 9.8% of your gross income.
Federal tax withholding deductions = 9.8% * $7.85
Finally, calculate state tax withholding deductions, which is 5.5% of your gross income.
State tax withholding deductions = 5.5% * $7.85
To find your net hourly wage, subtract all the deductions from your gross hourly wage:
Net hourly wage = Gross hourly wage - (FICA deductions + federal tax withholding deductions + state tax withholding deductions)
Net hourly wage = $7.85 - (FICA deductions + federal tax withholding deductions + state tax withholding deductions)
Plug in the values for the deductions and calculate the result to find your net hourly wage.