Question

Sean Matthews is a waiter at the Deluxe Lounge. In his first weekly pay in March, he earned $300.00 for the 40 hours he worked. In addition, he reports his tips for February to his employer ($500.00), and the employer withholds the appropriate taxes for the tips from this first pay in March.
Calculate his net take-home pay assuming the employer withheld federal income tax (wage-bracket, married, 2 allowances), social security taxes, and state income tax (2%).

Answer 1

Answer:

$147.80

Explanation:

Calculation for his net take-home pay

Gross pay $300

Less Federal income tax ($72)

($800 - $810 tax bracket)

Less Social security taxes - OASDI ($49.60)

(6.2%*$800)

Less Social security taxes - HI ($11.60)

(1.45%*$800)

Less State income tax ($16)

($800 x 0.02)

NET PAY $147.80

Therefore his net take-home pay will be $147.80