The earnings for Dixie Brown total $9,867 for the year to date. Dixie is married but claims exemptions. Her gross earnings for this week are $410. She has $50 deducted from her check each week for savings. She also has a $15 deduction for parking each week. The city in which Dixie works has a 1 percent for residents and a 1/2 percent tax for nonresidents on the first $10,000 of gross earnings. Dixie is not a resident of the city. What is her net income for the week?
2007-12-10 16:29:02 · 2 answers · asked by Lindsay 1 in Business & Finance ➔ Taxes ➔ United States
Ok assuming the paycheque is not included in the $9,867 in income
Gross Pay $410
Deductions:
- 50 Savings
- 15 Parking
- 0.67 non-resident tax (($10,000 - 9867) * 0.5%)
We don't know her other deductions for fed and state tax and social security. So right now her net is $344.33.
2007-12-14 02:35:25 · answer #1 · answered by CHARLES R 6 · 0⤊ 0⤋
Add up all the deductions. The 1% is $4.10, or $410 * .01, but that won't count since she isn't a resident of the city. The 1/2% is half of that, or $2.05. The only tricky part here is that you don't say whether she has hit the $10K gross earningslimit yet for the year, where they would quit taking it out, or not.
Subtract the total deductions from the gorss and you'll have her takehome.
2007-12-11 00:36:51 · answer #2 · answered by Judy 7 · 0⤊ 0⤋