Round to the nearest penny.
You work a part-time job at $7.85/hr for 10 hours per week. Your deductions are FICA (7.65%), federal tax withholding (9.8%), and state tax withholding (5.5%). What is your net hourly wage?
First, calculate the total hourly wage before deductions:
$7.85/hr * 10 hrs/week = $78.50/week
Next, calculate the total deductions:
FICA: 7.65% of $78.50 = $6.00
Federal tax withholding: 9.8% of $78.50 = $7.71
State tax withholding: 5.5% of $78.50 = $4.32
Total deductions = $6.00 + $7.71 + $4.32 = $18.03
Subtract the total deductions from the total hourly wage to find the net hourly wage:
$78.50 - $18.03 = $60.47
So, your net hourly wage is $60.47.