Answer :
Given:
Annual Salary = $13,500
Let's calculate his yearly taxes below.
• 1. Gross monthly income.
To find the gross monthly income, apply the formula below:
[tex]\begin{gathered} Gross=\frac{Annual\text{ salary}}{12}| \\ \\ \text{Gross = }\frac{13500}{12}=1125 \end{gathered}[/tex]The gross monthly income is $1,125
• 2. Monthly Federal Income Tax (11.6%):
To find the monthly Federal income tax which is 11.6% of monthly income, we have:
[tex]\begin{gathered} \text{Monthly federal income tax = 11.6\% of }Monthly\text{ income} \\ \\ \text{Monthly federal income tax = }\frac{11.6}{100}\ast1125=130.50 \end{gathered}[/tex]The monthly Federal income tax is $130.50
• 3. Monthly Social Security (FICA (6.2%)):
[tex]\begin{gathered} Monthly\text{ Social Security = 6.2\% of Monthly income} \\ \\ Monthly\text{ Social Security = }\frac{6.2}{100}\ast1125=69.75 \end{gathered}[/tex]The Monthly Social Security is $69.75
• 4. ,Monthly Medicare (1.45%)
[tex]\begin{gathered} \text{Monthly Medicare = 1.45\% of monthly income} \\ \\ \text{Monthly Medicare = }\frac{1.45}{100}\ast1125=\text{ 16.31} \end{gathered}[/tex]The Monthly Medicare is $16.31
• 5. Monthly State Tax (4%):
[tex]\begin{gathered} \text{Monthly State Tax = 4\% of Monthly income} \\ \\ \text{Monthly State Tax = }\frac{4}{100}\ast1125=45 \end{gathered}[/tex]The Monthlys State Tax is $45
• 6. ,Monthly Local Tax (0.1%):
[tex]\begin{gathered} \text{Monthly Local Tax = 0.1\% of Monthly income} \\ \\ \text{Monthly Local Tax = }\frac{0.1}{100}\ast1125\text{ = }1.125 \end{gathered}[/tex]The Monthly Local Tax is $1.125
• 7. Total Monthly deductions:
To find the Total Monthly Deductions, sum up all the monthly taxes.
We have:
Total Monthly deductions = $130.50 + $69.75 + $16.31 + $45 + $1.125 = $262.685
Therefore, the total monthly deductions is = $262.685
8. Net Monthly Income:
To find the Net Monthly Income, subtract the Total Monthly Deductions from the Gross Monthly income.
We have:
Net Monthly Income = Gross Monthly Income - Total Monthly Deductions
= $1125 - $262.685 = $862.315
Therefore, the Net Monthly Income is $862.315
ANSWER:
Gross Monthly Income = $1,125
Monthly Federal Income Tax(11.6%) = $130.50
Monthly Social Security (FICA (6.2%) = $69.75
Monthly Medicare (1.45%) = $16.31
Monthly State Tax (4%) = $45
Monthly local Tax (0.1%) = $1.125
Total Monthly Deductions = $262.685
Net Monthly Income = $862.315