You are paid $7.45/hr at your part-time job. Your deductions are FICA (7.65%), federal tax withholding (10.65%), and state tax withholding (5.7%). Your travel expenses are $5.70 per day worked. You work 12 hours over a 3-day period of time. What is your net income after travel expenses? Round any decimals to the nearest penny.
First, let's calculate your gross income for the 3-day period:
Gross income per hour = $7.45/hr
Total hours worked = 12 hours
Gross income for 3 days = $7.45/hr * 12 hours * 3 days = $268.20
Next, let's calculate the total amount deducted from your gross income:
FICA deduction = 7.65% of $268.20 = $20.52
Federal tax withholding = 10.65% of $268.20 = $28.55
State tax withholding = 5.7% of $268.20 = $15.27
Total deductions = $20.52 + $28.55 + $15.27 = $64.34
Now, let's subtract the total deductions from your gross income to find your net income before travel expenses:
Net income before travel expenses = $268.20 - $64.34 = $203.86
Finally, subtract the travel expenses from your net income before travel expenses to find your final net income:
Travel expenses per day = $5.70
Total travel expenses for 3 days = $5.70 * 3 days = $17.10
Net income after travel expenses = $203.86 - $17.10 = $186.76
Therefore, your net income after travel expenses would be $186.76.