Givens: You accept a job as an exempt employee, and will be paid $44,000.00 your first year. You are paid monthly, and receive 10 paid holidays and two weeks of vacation after completing 8 months of working time. Deductions from your paycheck will occur as follows: 18% for federal income taxes; 4% for state income taxes; and 7.65% for FICA (Social Security and Medicare). Questions: A) what is your monthly paycheck after deductions? B) what are your monthly, and annual deductions for 1. Federal income taxes; 2. State income taxes; and 3. FICA? C) how long did you have to work just to pay your annual taxes?
Annual Pay | $ 44,000 | ||
Monthly pay | $ 3,667 | ||
Deductions | |||
Federal income taxes | $ 660 | ||
State income taxes | $ 147 | ||
FICA | $ 281 | ||
Total Deductions | $ 1,087 | ||
A | Monthly Paycheck | $ 2,579 | |
B | Monthly | Annual | |
Federal income taxes | $ 660 | $ 7,921 | |
State income taxes | $ 147 | $ 1,760 | |
FICA | $ 281 | $ 3,366 | |
Total Deductions | $ 1,087 | $ 13,047 | |
C | 13047/3667 | 3.6 | Months |
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