Question

You have a part-time job paying $8.95/hr and your deductions are FICA (7.65%), federal tax withholding (9.3%), and state tax withholding (5.8%). You save $30.00/wk for a savings account. If you work 15 hours/wk, how much discretionary income is left each week?

Answer 1

8.95x7.65%=0.684675
8.95x9.3%=0.83235
8.95x5.8%=0.5191
Add together to get 2.036125 and add 30 to get 32.036125
8.95x15=134.25
Subtract 32.036125 from 134.25 to get the discretionary income per week
134.25-32.036125=102.213875 so the discretionary income is $102.21

Answer 2

$ 73.71/wk

Explanation:

Number of working hours in a week = 15 hours

Payment per hour = $ 8.95

Total deductions on hourly payment =

8.95x7.65%=0.685

8.95x9.3%=0.832

8.95x5.8%=0.519

Total deduction = (0.685 + 0.832+ 0.519) = 2.036

Net payment per hour after deductions = $ 8.95 - 2.036

= $ 6.914

Total weekly payment

= Number of working hours in a week x Net payment per hour

= 15 hours/wk x $ 6.914

= $ 103.71/wk

The discretionary income left after saving = $ 103.71/wk - $30.00/wk

= $ 73.71/wk