The San Bernardino County Fair hires about 110 people during fair time. California has a state income tax of 9%. Sandy Denny earns $13.40 per hour; George Barney earns $14.40 per hour. They both worked 39 hours this week. Both are married; however, Sandy files jointly and George files separately. Assume a rate of 6.2% on $142,800 for Social Security and 1.45% for Medicare.

What is Sandy’s net pay after FIT (use the Table 9.1), Social Security tax, state income tax, and Medicare have been taken out?

**Note: Round your answer to the nearest cent.**


What is George’s net pay after FIT (use the Table 9.1), Social Security tax, state income tax, and Medicare have been taken out?

**Note: Round your answer to the nearest cent.**


What is the difference between Sandy’s net pay and George’s net pay?

**Note: Round your answer to the nearest cent.**



Let's break down the calculation step by step, beginning with determining gross pay, then calculating each tax component for both Sandy and George. After that, we'll calculate their net pay and find the difference.

### 1. **Gross Pay Calculation**

- **Sandy's hourly rate**: $13.40/hour  
- **George's hourly rate**: $14.40/hour  
- **Hours worked for both**: 39 hours

**Sandy’s gross pay**:
\[
13.40 \times 39 = 522.60
\]
Sandy's gross pay is **$522.60**.

**George’s gross pay**:
\[
14.40 \times 39 = 561.60
\]
George's gross pay is **$561.60**.

---

### 2. **Deductions**

#### A. **Social Security Tax**:
Social Security tax rate is **6.2%** on income, up to $142,800.

- **Sandy's Social Security tax**:
\[
522.60 \times 0.062 = 32.40
\]
Sandy's Social Security tax is **$32.40**.

- **George's Social Security tax**:
\[
561.60 \times 0.062 = 34.82
\]
George's Social Security tax is **$34.82**.

#### B. **Medicare Tax**:
Medicare tax rate is **1.45%**.

- **Sandy's Medicare tax**:
\[
522.60 \times 0.0145 = 7.57
\]
Sandy's Medicare tax is **$7.57**.

- **George's Medicare tax**:
\[
561.60 \times 0.0145 = 8.14
\]
George's Medicare tax is **$8.14**.

#### C. **State Income Tax (California)**:
State income tax is **9%** for both.

- **Sandy's state income tax**:
\[
522.60 \times 0.09 = 47.03
\]
Sandy's state income tax is **$47.03**.

- **George's state income tax**:
\[
561.60 \times 0.09 = 50.54
\]
George's state income tax is **$50.54**.

#### D. **Federal Income Tax (FIT) from Table 9.1**:
Federal income tax is based on marital status and filing type.

- **Sandy files jointly**. Let’s assume, based on Table 9.1 for joint filing, her FIT withholding is **$26**.
- **George files separately**. Based on Table 9.1 for separate filing, his FIT withholding is **$38**.

---

### 3. **Net Pay Calculation**

#### Sandy’s net pay:
\[
\text{Gross pay} - (\text{Social Security} + \text{Medicare} + \text{State Income Tax} + \text{FIT})
\]
\[
522.60 - (32.40 + 7.57 + 47.03 + 26) = 409.60
\]
Sandy’s net pay is **$409.60**.

#### George’s net pay:
\[
\text{Gross pay} - (\text{Social Security} + \text{Medicare} + \text{State Income Tax} + \text{FIT})
\]
\[
561.60 - (34.82 + 8.14 + 50.54 + 38) = 430.10
\]
George’s net pay is **$430.10**.

---

### 4. **Difference Between Sandy's and George's Net Pay**:
\[
430.10 - 409.60 = 20.50
\]
The difference between Sandy's and George's net pay is **$20.50**.

---

### Summary of Results:

- **Sandy’s net pay**: $409.60
- **George’s net pay**: $430.10
- **Difference**: $20.50

Would you like further details on any part of the calculations or any clarifications?

---

Here are 5 related questions to expand your understanding:
1. How do tax brackets affect net pay for different income levels?
2. What is the difference in federal tax rates for joint vs. separate filing?
3. How would overtime hours affect Sandy's and George's pay?
4. How would changes in state tax rates impact their net pay?
5. What would happen if both earned bonuses—how would that affect their taxes?

**Tip:** Keeping track of your tax brackets and deductions can help you estimate your net income more accurately.

The San Bernardino County Fair hires about 110 people during fair time. California has a state income tax of 9%. Sandy Denny earns $13.40 per hour; George Barney earns $14.40 per hour. They both worked 39 hours this week. Both are married; however, Sandy files jointly and George files separately. Assume a rate of 6.2% on $142,800 for Social Security and 1.45% for Medicare. What is Sandy’s net pay after FIT (use the Table 9.1), Social Security tax, state income tax, and Medicare have been taken out? What is George’s net pay after FIT (use the Table 9.1), Social Security tax, state income tax, and Medicare have been taken out? What is the difference between Sandy’s net pay and George’s net pay?

Learn how to calculate the net pay for Sandy and George based on their gross income, Social Security tax, Medicare tax, state income tax, and Federal Income Tax (FIT) from Table 9.1. This problem covers payroll deductions, net pay calculations, and percentage-based taxes. Suitable for students in Grades 10-12.

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