QUESTION 4 Net pay refers to the amount of take home pay after taxes and other d

Question

QUESTION 4 Net pay refers to the amount of take home pay after taxes and other deductioms (healthcare, secial security,retirement, etc.J. For the purposes of this preject we will asume everyone is an unmuarried individual with ne chidren, we will assume your net salary h simply your gross salary minus your tases (that you wil calculate using the table below) and all of your gross salary will be considered taxable Inconse. Find your net py. Show Be sure to use the equation editor and Label your final solution Bound yaue solution to the nearcest dellar If Taxable Income Is Between: 0-$9,225 $9,226-$37 450 37,451-$90,750 $90,751 $189,300 $189.301-$411,500 $411,501-$413,200 $413,201+ 10%oftaxable me $922 50 + 15% of the amount over $9,225 ss, 156.25 25% of the amount over S37.450 $18,481.25 + 28% ofthe amount over $90.750 $46.07525 + 33% ofthe amount over S 189,300 $119.401.25 + 35% of the amount over $411,500 $119.996.25 + 398% ofthe amount over $413,200

Explanation / Answer

Since the yearly gross salary is 38,948$
It comes in the tax slab of $ 37451- 90750$
For this tab slab, the tax due is : 5156.25$ + 25% of the salary above 37450$

The salary is above 37450$ by this much amount : = 38948- 37450 = 1498
Thus, your tax due is = 5156.25$ + 25% of 1498$ = 5156.25 + 374.5 = 5530.75$
Thus, out of your gross salary of 38948$, your tax due is 5530.75$ and your net salary is the remaining 33417.25$

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