You are paid $8.35/hr at your part-time job. Your deductions are FICA (7.65%), federal tax withholding (9.15%), and state tax withholding (7.5%). Your travel expenses are $6.30 per day worked. You work 16 hours over a 4-day period of time. What is your net income after travel expenses?
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First, calculate your total earnings before deductions:
Total earnings = $8.35/hr * 16 hours = $133.60
Next, calculate the total deductions:
FICA = 7.65% of $133.60 = $10.20
Federal tax withholding = 9.15% of $133.60 = $12.23
State tax withholding = 7.5% of $133.60 = $10.02
Total deductions = $10.20 + $12.23 + $10.02 = $32.45
Subtract the total deductions from your total earnings to get your gross income:
Gross income = $133.60 - $32.45 = $101.15
Now, subtract the travel expenses for the 4 days worked:
Travel expenses = $6.30/day * 4 days = $25.20
Net income = Gross income - Travel expenses
Net income = $101.15 - $25.20 = $75.95
Therefore, your net income after travel expenses is $75.95.