Question

Theresa worked this summer as a lifeguard at a community pool. She earned $3,360 for the summer before taxes. The payroll company withheld 6.2% of Theresa's income for Social Security, 1.45% for Medicare, and 12.8% for federal income tax. How much was Theresa's take-home pay after all of the taxes and withholdings? Round to the nearest cent if necessary.

Answer 1

First, what was the total percentage of withholding and taxes?

6.2% + 1.45% + 12.8% = 20.45%

Second, what is 20.45% of 3360?

To answer this, you multiply the percent (as a decimal) by the value:

0.2045 x 3360 = 687.12

So 687.12 was withheld.

Third, what is 3360 - 687.12?

$2672.88

So here earnings - taxes = $2672.88