Round to the nearest penny.
You have a part-time job that pays $4.70/hr and average tips are $3.85/hr. Your deductions are FICA (7.65%), federal tax withholding (12.3%), and state tax withholding (8.2%). You work 13 hr/wk. You save 15% of your realized income each week. How much do you save per month?
First, let's calculate the total income per hour:
Total income = hourly wage + average tips
Total income = $4.70/hr + $3.85/hr
Total income = $8.55/hr
Next, let's calculate the total deductions per hour:
Total deductions = FICA + federal tax + state tax
Total deductions = 7.65% + 12.3% + 8.2%
Total deductions = 28.15%
Now, let's calculate the net income per hour:
Net income = Total income - Total deductions
Net income = $8.55/hr - 28.15%($8.55/hr)
Net income = $8.55/hr - $2.41/hr
Net income = $6.14/hr
Now, let's calculate the total income per week:
Total income per week = Net income per hour x hours worked per week
Total income per week = $6.14/hr x 13 hr/wk
Total income per week = $79.82
Now, let's calculate the total savings per week:
Total savings per week = 15% x Total income per week
Total savings per week = 15% x $79.82
Total savings per week = $11.97
Finally, let's calculate the total savings per month:
Total savings per month = Total savings per week x 4 weeks
Total savings per month = $11.97/week x 4 weeks
Total savings per month = $47.88
Therefore, you save $47.88 per month from your part-time job.