Answer :
Answer:
Susan's take-home pay $48,645.
Step-by-step explanation:
Given:
Susan, a recent college graduate, makes a base salary of $70,000 per year. Susan has federal income tax withholding of $12,000, and state tax withholding of $4,000. Employers are required to withhold a 6.2% Social Security tax and a 1.45% Medicare tax.
Now, to find Susan's take-home pay.
Basic salary = $70,000.
Now, her tax withholdings:
Federal income tax = $12,000.
State tax = $4,000.
Social security tax = 6.2% of $70,000.
[tex]=\frac{6.2}{100} \times 70,000\\\\=0.062\times 70,000\\\\=\$4340.[/tex]
Medicare tax = 1.45% of $70,000.
[tex]=\frac{1.45}{100} \times 70000\\\\=0.0145\times 70000\\\\=\$1015.[/tex]
Now, to get the take-home pay of Susan's we subtract all the tax holdings of federal, state, social and medicare from the basic salary:
[tex]70,000-(12,000+4,000+4340+1015)[/tex]
[tex]=70,000-(21,355)[/tex]
[tex]=70,000-21,355[/tex]
[tex]=\$48,645.[/tex]
Therefore, Susan's take-home pay $48,645.