1. The gross income of David Vaughn is $785 per week. His deductions are $42.25, FICA tax; $90.33, income tax; 2% state tax; 1% city tax; and 3% retirement fund. What is her net income for one week?
A. $605.32
B. $749.77
C. $675.32
D. $628.77
A?
Right.
To find David Vaughn's net income for one week, we need to subtract his deductions from his gross income.
First, let's calculate the total amount of deductions:
FICA tax = $42.25
Income tax = $90.33
State tax = 2% of $785 = $15.70
City tax = 1% of $785 = $7.85
Retirement fund = 3% of $785 = $23.55
Adding all the deductions: $42.25 + $90.33 + $15.70 + $7.85 + $23.55 = $179.68
Next, subtract the total deductions from the gross income:
Gross income = $785
Deductions = $179.68
Net income = Gross income - Deductions
Net income = $785 - $179.68 = $605.32
Therefore, the correct answer is option A. $605.32