Your gross pay is $2,759.00. your involuntary deductions are fica (7.65%), federal withholding (12%), and state withholding (7%). how much are you allowed for housing and fixed expenses? a. $772.52 b. $993.24 c. $728.54 d. $566.64

Question

Mathematics

Maximo Raymond

18 August, 10:32

Your gross pay is $2,759.00. your involuntary deductions are fica (7.65%), federal withholding (12%), and state withholding (7%). how much are you allowed for housing and fixed expenses? a. $772.52 b. $993.24 c. $728.54 d. $566.64

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Answers (2)

Know the Answer?

Annabel Hansen · Answer 1

728.54 is the correct answer in this particular situation.

Kelvin Mosley · Answer 2

Gross pay = $2,759.00

Total deductions = 7.65%+12%+7% = 26.65% = 0.2665

By thumb rule, rent and other fixed expenses ≤ 28% of Monthly gross salary

Therefore,

Allowed housing and fixed expenses = 0.28*2,759 = $772.52

Then, a. is the correct answer.