question archive Rhonda Brennan found her first job after graduating from college through the classifieds of the Miami Herald

Rhonda Brennan found her first job after graduating from college through the classifieds of the Miami Herald

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Rhonda Brennan found her first job after graduating from college through the classifieds of the Miami Herald. She was delighted when the offer came through at $18.70 per hour. She completed her W-4 stating that she is married with a child and claims an allowance of 1. Her company will pay her biweekly for 80 hours (assume a tax rate of 6.8% on $108,700 for Social Security and 1.43% for Medicare). (One withholding allowance is $140.38 biweekly) What is her take home pay

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Solution:

Earnings biweekly                        1,496.00

Less: Withholding allowance          140.38

                                                     1,355.62

Less:Taxe rate@6.8%                      92.18

Less: Medicare@1.43%                   19.39

Take home pay                             1,244.05

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