Ask Question
1 February, 06:34

Boris is a web developer. His annual gross salary is $45,000. From this, he must pay social security (calculated as 10% of his gross pay) plus income tax (on the gross pay before the social security deduction).

There is a progressive tax system for calculating income tax, where the first $10,000 is tax free, and anything above $10,000 is taxed at 25%.

What is his take home pay? Round your answer to the nearest dollar.

+2
Answers (2)
  1. 1 February, 07:24
    0
    Answer: $32,625

    Step-by-step explanation:

    40,000-10,000 = 35,000 - --> how much is taxed

    35,000 x. 25 = 8,750 = income tax

    45,000 - 8,750 = 36,250

    36,250 x. 1 = 3,625 - --> social security

    45,000 (gross pay) - 8,750 (income tax) - 3,625 = 32, 625
  2. 1 February, 08:06
    0
    31,750

    Step-by-step explanation:

    Social Security = $45,000 x 10% = $45,000 x 10/100 = $4,500

    Income tax = $ (45,000 - 10,000) x 25% = $35,000 x 25/100 = $8,750

    Take Home Pay = $45,000 - $4,500 - $8,750 = $31,750
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Boris is a web developer. His annual gross salary is $45,000. From this, he must pay social security (calculated as 10% of his gross pay) ...” in 📘 Mathematics if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers