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At his new job, Manuel expects to make about $37,850 per year. He is paid bi-weekly. 15% of his gross pay will be withheld for federal income tax; 4% for state income tax and 7.65% for Social Security and Medicare taxes. Calculate his net pay

Answer :

Manuel earns $37,850 per year. Since he is paid bi-weekly (once in two weeks) and a year has 52 weeks, his gross payment is:

[tex]\frac{37850}{26}=1455.77[/tex]

Now, let's add the percentages of each tax:

[tex]15\text{\%}+4\text{\%}+7.65\text{\%}=26.65\text{\%}[/tex]

Calculating this percentage of his gross payment, we have:

[tex]1455.77\cdot\frac{26.65}{100}=387.96[/tex]

Finally, to find his net pay, let's subtract the taxes from the gross payment:

[tex]1455.77-387.96=1067.81[/tex]

His net payment is $1067.81

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