Question

Givens: You accept a job as an exempt employee, and will be paid $44,000.00 your first...

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?

Homework Answers

Answer #1
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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