You have a part-time job that pays $4.70/hr and average tips are $3.85/hr. Your deductions are FICA (7.65%), federal tax withholding (12.3%), and state tax withholding (8.2%). You work 13 hr/wk. You save 15% of your realized income each week. How much do you save per month?
First, let's calculate your total income per week:
Income per hour = $4.70 + $3.85 = $8.55
Total income per week = $8.55/hr * 13 hr/wk = $111.15
Next, let's calculate your total deductions per week:
FICA deduction = 7.65% * $111.15 = $8.49
Federal tax withholding = 12.3% * $111.15 = $13.67
State tax withholding = 8.2% * $111.15 = $9.13
Total deductions per week = $8.49 + $13.67 + $9.13 = $31.29
Now, let's calculate your realized income per week:
Realized income per week = $111.15 - $31.29 = $79.86
Since you save 15% of your realized income each week, your savings per week is:
Savings per week = 15% * $79.86 = $11.98
Finally, to calculate your savings per month, multiply your weekly savings by 4 (assuming there are 4 weeks in a month):
Savings per month = $11.98/week * 4 weeks/month = $47.92
Therefore, you save $47.92 per month.