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You are paid $5.75/hr at your part-time job delivering pizzas. You usually earn $1.50/pizza as a tip. Your deductions are FICA (7.65%), federal tax withholding (11.2%), and state tax withholding (7.1%). If you work 10 hours and deliver 3 pizzas/hr, what is your gross pay including tips?

Respuesta :

By working 10 hours and delivering 3 pizzas/hr, the total income is calculated through,  
                total income = ($5.75/hr)(10 hr) + ($1.5/pizza)(3pizzas/h)(10 h)
                                         = $102.5
The total amount of tax that needs to be paid is 25.95%. The gross pay is,
                           gross pay = ($102.5)(1 - 0.2595)
                                              = $75.9.