Sean Matthews is a waiter at the Deluxe Lounge. In his first weekly pay in March, he earned $300 for the 40 hours he worked. In addition, he reports his tips for February to his employer ($500), 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, 1 allowance), social security taxes, and state income tax (0.02)

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Luka

Business

10 November, 03:42

Sean Matthews is a waiter at the Deluxe Lounge. In his first weekly pay in March, he earned $300 for the 40 hours he worked. In addition, he reports his tips for February to his employer ($500), 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, 1 allowance), social security taxes, and state income tax (0.02)

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Marlon · Answer 1

Net pay $147.80

Explanation:

Gross pay $ 300.00

Federal income tax (800 - 810 tax bracket) - $75

Social security taxes (800 x 0.062) $ - 49.60

Social security taxes (800 x 0.0145) $ - 11.60

State income tax (800 x 0.02) $ - 16

Net pay $147.80