Question

Sean Matthews is a waiter at the Duluxe 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, single, 3 allowances), social security taxes, and state income tax (2%).

Enter deductions beginning with a minus sign (-). Round interim amounts to two decimal places. Use these values in subsequent computations then round final answer to two decimal places.

Click here to access the Wage-Bracket Method Tables.

Gross pay	$
Federal income tax
Social security taxes - OASDI
Social security taxes - HI
State income tax
Net pay	$

Answer 1

Answer:-

Ascertain Net Pay utilizing wage-section, Married, 1 recompenses tables for the year finishing 2016 as follows:

Particulars	Amount
Gross Pay	300
Federal income tax on 800	-77.9
Social Security tax - OASDI @ 6.2% on 800	-49.6
Social Security tax - HI @ 1.45% on 800	-11.6
State income tax @2% at 800	-16
Net Pay	144.9

Hence, Net Pay is $144.90

Government Income charge is taken from the compensation section table 2016 for wedded people and 1 retention (800-810)