Thomas earns $52,000 per year in salary. You pay 15% for federal income tax, no state taxes, no social security, and 1.45 % for medicare. You receive 5 days of paid vacation. What is the gross monthly salary? What is the net monthly salary (without vacation)? Thomas takes 4 days off in April to go on vacation. What is his net monthly salary for April? In September, Thomas takes 3 more days off. What is his net monthly pay for September?
To determine Thomas’s gross monthly salary, we need to divide his annual salary by 12 to get a monthly figure. Hence, Thomas’s gross monthly salary is $52,000 / 12 = $4,333.33.
Next, let’s calculate his net monthly salary without considering any vacation days. The federal income tax is 15% of his salary. Therefore, the amount deducted for federal income tax is $4,333.33 * 0.15 = $650.
Similarly, Thomas pays 1.45% for Medicare, which amounts to $4,333.33 * 0.0145 = $62.84.
There are no state taxes or social security deductions mentioned, so we can disregard them for now.
To calculate Thomas’s net monthly salary without vacation, we subtract the deductions for federal income tax and Medicare from his gross monthly salary: $4,333.33 – $650 – $62.84 = $3,620.49.
Now, let’s consider April when Thomas takes 4 days off for vacation. Since Thomas receives 5 days of paid vacation, he still has 1 remaining vacation day to use in April. However, we need to calculate his net monthly pay when he takes vacation days into account.
Since Thomas takes 4 vacation days in April, he will only be paid for 26 days of work that month (30 days – 4 vacation days). To calculate his net monthly pay for April, we need to adjust his deductions proportionately.
First, let’s calculate the adjusted federal income tax deduction. Since Thomas only works 26 days in April instead of the usual 30, we multiply the federal income tax deduction by the proportion of days worked: $650 * (26/30) = $563.33.
Similarly, we calculate the adjusted Medicare deduction: $62.84 * (26/30) = $54.20.
To find Thomas’s net monthly pay for April, we subtract the adjusted deductions from his gross monthly salary: $4,333.33 – $563.33 – $54.20 = $3,715.80.
Moving on to September, when Thomas takes 3 additional vacation days, his calculations will be similar to those for April. Thomas will only be paid for 27 days in September (30 days – 3 vacation days).
Therefore, we adjust the federal income tax deduction: $650 * (27/30) = $585.
We also adjust the Medicare deduction: $62.84 * (27/30) = $56.57.
To determine Thomas’s net monthly pay for September, we subtract the adjusted deductions from his gross monthly salary: $4,333.33 – $585 – $56.57 = $3,691.76.
In summary, Thomas’s gross monthly salary is $4,333.33. His net monthly salary without vacation is $3,620.49. In April, his net monthly salary considering the 4 vacation days is $3,715.80, and in September, it is $3,691.76.