Question

Ginny Jones receives $650 gross salary biweekly. Her income tax rate is 15%. Her group health plan contribution is $24.50 per pay period. She belongs to the company retirement plan, to which she contributes 6.5% of her earnings. She is also covered under Social Security benefits. Her current contribution is 7.65%. If these items are all her deductions, what is her take-home pay per period? Ginny gets a $55 raise per pay period. If her health plan is unchanged, how much of the raise will she have to take home?

Answer 1

Considering biweekly as pay per period

Gross Salary of Ginny Jones biweekly= $ 650

Income tax rate = 15%

Amount given as income tax by Ginny Jones= 15 % of 650

                                                    = $ $\frac{15}{100} \times 650=97.50$$

Group health plan Contribution =$ 24.50

Donation towards company retirement plan = 6.5% of $ 650

                                         =   $ $\frac{6.5}{100} \times 650=42.25$$

Contribution towards Social Security benefits= 7.65% of $ 650

                                                   =    $ $\frac{7.65}{100} \times 650=49.725$$

Money taken to home by Ginny biweekly i.e pay per period = Gross income - Deductions

                                                     =  650 - (97.50 + 24.50+42.25+49.725)

                                                      = 650 -213.975

                                                       =  $436.025

Money got by Ginny as a raise per period = $ 55

Total money taken to home by Ginny = $ 436.025 + $ 55

                                                             = $ 491.025

Answer 2

YOUR ANSWER IS: 436.52