Juanita has a part-time job that pays $12/hour and works about 50 hours every month. Her withholdings are Social Security (6.2%), Medicare (1.45%) and federal income tax (10%). What is her approximate net pay?*2 points$120$500$600$700
Question
Juanita has a part-time job that pays 120600$700
Solution
To calculate Juanita's net pay, we first need to calculate her gross pay, which is the total amount she earns before any deductions are made.
Step 1: Calculate Gross Pay Juanita earns 12/hour * 50 hours/month = $600/month.
Step 2: Calculate Total Withholdings Next, we need to calculate the total amount that will be withheld from her pay for Social Security, Medicare, and federal income tax.
- Social Security is 6.2% of her gross pay, so that's 37.20.
- Medicare is 1.45% of her gross pay, so that's 8.70.
- Federal income tax is 10% of her gross pay, so that's 60.
The total amount withheld from her pay is 8.70 + 105.90.
Step 3: Calculate Net Pay Finally, we subtract the total withholdings from her gross pay to find her net pay. That's 105.90 = $494.10.
So, Juanita's approximate net pay is 500 is the closest.
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