Round to the nearest penny.
Your primary job’s gross income is $3,500.00/month, and your second job’s realized income is $368.49/month. Deductions are FICA (7.65%), federal tax withholding (10.75%), and state tax withholding (8.35%). How much is the income on your monthly budget?
First, calculate the total deductions:
Total deductions = (FICA + federal tax withholding + state tax withholding) x (primary job income + second job income)
Total deductions = (0.0765 + 0.1075 + 0.0835) x ($3,500 + $368.49)
Total deductions = 0.2675 x $3,868.49
Total deductions = $1,036.08
Next, calculate the net income:
Net income = (primary job income + second job income) - total deductions
Net income = $3,868.49 - $1,036.08
Net income = $2,832.41
The income on your monthly budget is $2,832.41.