financial wellness

Question

Andrea has a full time job that pays $60,000 per year. Each month Federal withholding taxes are $750 and State taxes are $150. Health care costs $250 and the individual is required to contribute 5% of her salary to a 401k plan that is matched by the employer.

1.     What is Andrea’s take home salary each month?

Answer 1

5,000 per month for 12 months has a gross of $60,000. 5% of 5,000 goes into an IRA or $250,

Net Pay = gross - Fed Taxes-State Taxes - Insurance contributions - 401k

=5000 - 750 -150 -250 -250 = 3,600