Question

You are still debating about the two different computers. If you are paid $10.00/hour and your deductions are FICA (7.65%), federal tax withholding (12%), and state tax withholding (8%), how many hours do you have to work to pay for the new computer?
Include step by step

Answer 1

Answer:

89 hours

Step-by-step explanation:

First solve all the deductions.

For each multiply the $10, which you are paid, and the percentage.

For FICA: $10 x 0.0765 = $0.77 per hr

For Fed tax: $10 x 0.12 = $1.2 per hr

For State tax: $10  x 0.08 = $0.8 per hr

Now subtract the remaining pay:

10 – 0.77 – 1.2 – 0.8 = $7.23

Time required = $640 / $7.23 per hr

Time required = 89 hrs

Final answer:

89 hours