Example #1:
A man living in Massachusetts works for a company that pays him 16 dollars per hour and the man usually works 40 hours a week. What is the man's take home pay if he has the following deductions from his paycheck.
Contribution to 401(k): 100 dollars
Federal tax: 54 dollars
State tax : 32 dollars
City tax / Local tax: 0
Health insurance : 75
Medicare tax: 20.88
Disability tax: 0
First, notice that we are going to calculate the weekly take home pay since the information we have is for a weekly paycheck.
Then, we need to compute the man's gross wage.
Gross wage = number of hours worked per week × hourly rate
Gross wage = 40 × 16 = 640
After entering the information above in the appropriate field, you should get a take home pay of 358.12 dollars.
Notice that in the situation above, almost half of the man's gross income is gone paying deductions
Example #2:
John who lives in Florida works for a BMW dealer as a sales manager. His weekly salary is 1000 dollars. What is the John's take home pay if he has the following deductions from his paycheck.
Contribution to 401(k): 200 dollars
Federal tax: 120 dollars
State tax : 0
City tax / Local tax: 0
Health insurance : 130
Medicare tax: 29
Disability tax: 0
We are going to calculate John's weekly take home pay and there is no need to compute the gross pay since it is already given.
After entering the information above in the appropriate field, you should get a take home pay of 521 dollars.
Apr 02, 20 12:05 PM
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