Question

Ayled will earn $42.100 this year. She is paid semi-monthly. 17% of her gross pay will be withheld for federal income tax, 4.5% for state income tax and 7.65% for Social Security and Medicare taxes. Calculate her net pay and how much she will pay in taxes each paycheck. a. Convert the Annual Pay to semimonthly Pay (24) b. How much money will she pay in taxes each paycheck? c. What is the Net Pay (take-home pay)?

Answer 1

a.

Annual pay = $42.100

Semi monthly pay = 42.1/24 = $1.754

b.

Total Tax percentage = 17 + 4.5 + 7.65

= 29.15%

Taxes for each paycheck

`\begin{gathered} =\text{ 29.15\% of \$1.754} \\ =\text{ }(29.15)/(100)\text{ }*\text{ 1.754} \\ =\text{ }\frac{29.15\text{ x 1.754}}{100} \\ =\text{ }(51.1291)/(100) \\ =\text{ \$0.511291} \end{gathered}`

c.

Total Annual tax payment = 24 x $0.511291

= $12.27

Net pay = annual payment - total annual tax

= $42.1 - $12.27

= $29.83