Answer:
Jim Dunn's net pay for the week is $371.03.
Step-by-step explanation:
To find Jim Dunn's net pay for the week, we need to calculate the amount he needs to pay for Social Security (FICA), Medicare, state tax, and local tax, as well as the amount he needs to pay for medical insurance. Then we need to subtract these amounts from his gross pay to find his net pay.
First, let's calculate the amount he needs to pay for Social Security (FICA). Since FICA is 6.2% of his gross pay, the amount he needs to pay is 6.2/100 * $595.00 = $36.79.
Next, let's calculate the amount he needs to pay for Medicare. Since Medicare is 1.45% of his gross pay, the amount he needs to pay is 1.45/100 * $595.00 = $8.62.
Next, let's calculate the amount he needs to pay for state tax. Since state tax is 2.5% of his gross pay, the amount he needs to pay is 2.5/100 * $595.00 = $14.87.
Next, let's calculate the amount he needs to pay for local tax. Since local tax is 2% of his gross pay, the amount he needs to pay is 2/100 * $595.00 = $11.90.
Finally, let's calculate the amount he needs to pay for medical insurance. Since his employer pays 75% of the cost of his medical insurance, he needs to pay 25/100 * $1007.50 = $251.87.
Now that we have calculated the amounts he needs to pay for Social Security (FICA), Medicare, state tax, local tax, and medical insurance, we can subtract these amounts from his gross pay to find his net pay. His net pay is $595.00 - $36.79 - $8.62 - $14.87 - $11.90 - $251.87 = $371.03.
Therefore, Jim Dunn's net pay for the week is $371.03.
Answer:
$517.86 (nearest cent)
Step-by-step explanation:
Given information:
Calculate the amount of FICA, Medicare, State tax and Local tax Jim pays per week by multiplying the percentage (in decimal form) by his weekly gross pay.
[tex]\begin{aligned}\implies\textsf{Social Security (FICA)}&=0.062 \times 595\\&=36.89\end{ailgned}[/tex]
[tex]\begin{aligned}\implies\textsf{Medicare}&=0.0145 \times 595\\&=8.6275\\&=8.63\end{ailgned}[/tex]
[tex]\begin{aligned}\implies\textsf{State tax}&=0.025 \times 595\\&=14.875\\&=14.88\end{ailgned}[/tex]
[tex]\begin{aligned}\implies\textsf{Local tax}&=0.02 \times 595\\&=11.90\end{ailgned}[/tex]
Therefore, the total Jim pays in FICA, Medicare, State tax and Local tax each week is $72.30.
If Jim's employer pays 75% of his medical insurance, then Jim pays 25%.
[tex]\begin{aligned}\implies \textsf{Annual Medical insurance payment}&= 25\% \; \textsf{of} \; \$1007.50\\ &=0.25 \times 1007.50\\&=251.875 \end{aligned}[/tex]
The given medical insurance payment is annual. Therefore, to find the weekly payment for medical insurance, divide the annual payment by 52 (since there are 52 complete weeks in a year):
[tex]\begin{aligned}\implies \textsf{Weekly Medical insurance payment}&= 251.875 \div 52\\&=4.84375\\&=4.84\end{aligned}[/tex]
To calculate Jim's net pay for the week, subtract all the payments from his gross weekly salary:
[tex]\begin{aligned}\implies \textsf{Net pay (per week)}&=595.00-72.30-4.84\\&=517.86\end{aligned}[/tex]
Therefore, Jim's net pay for the week is $517.86 (nearest cent).
