Monica has a yearly salary of $39,200. Her employer withholds $4704 in state and federal taxes and $3802 in FICA taxes throughout the year. She has the following monthly costs: transportation is $140, cell phone bill is $55, student loans require $200 in repayment, and rent is $650. She is using the average monthly costs for each of the following in order to gain an idea of other monthly expenses: utilities are $210, internet is $65, health insurance is $281, and groceries are $220. What is Monica’s monthly net pay amount? Round your answer to the nearest cent, if necessary.

Question

Monica has a yearly salary of $39,200. Her employer withholds $4704 in state and federal taxes and $3802 in FICA taxes throughout the year. She has the following monthly costs: transportation is $140, cell phone bill is $55, student loans require $200 in repayment, and rent is $650. She is using the average monthly costs for each of the following in order to gain an idea of other monthly expenses: utilities are $210, internet is $65, health insurance is $281, and groceries are $220. What is Monica’s monthly net pay amount? Round your answer to the nearest cent, if necessary.

Answer 1

First, let's calculate Monica's total monthly costs:

Transportation: $140
Cell phone: $55
Student loans: $200
Rent: $650
Utilities: $210
Internet: $65
Health insurance: $281
Groceries: $220

Total monthly costs = $140 + $55 + $200 + $650 + $210 + $65 + $281 + $220 = $1821

Next, let's calculate Monica's monthly net pay amount:

Yearly salary: $39,200
Total yearly taxes withheld: $4704 (state and federal) + $3802 (FICA) = $8506

Net yearly pay = $39,200 - $8506 = $30,694
Monthly net pay = $30,694 / 12 = $2557.83

Subtracting Monica's total monthly costs from her monthly net pay:

Monthly net pay - Total monthly costs
$2557.83 - $1821 = $736.83

Monica's monthly net pay amount is $736.83.