# Thread: Find new salary: Sue is paid salary of ​$440/week plus 7​% of all sales over$5000.

1. ## Find new salary: Sue is paid salary of ​$440/week plus 7​% of all sales over$5000.

Sue Tomlin is paid a salary of ​$440 per week plus 7​% of all sales over​$5000. She is single and claims two withholding allowances each one at $70.19 . Her deductions include​ FICA, Medicare, federal​ withholding, state disability​ insurance, state​ withholding, credit union savings of ​$50​, a Salvation Army contribution of ​$10​, and dues of ​$15 to a professional sales association. Find her net pay for a week in April during which she has sales of ​$12,938.00 with returns and allowances of ​$417.58. Use the percentage method of​ withholding, a FICA rate of 6.2​%, a Medicare rate of 1.45​%, an SDI rate of 1​%, and a state withholding tax of 3.4​%.

I think I have to remove the allowances of 417.58 from the 12,938.00 = 12520.20 then multiply new number by the .07 = 876.4294 round up = 876.43 then add new number to the 440.00 =1316.43 then subtract 2 (70.19) = 140.38 which gives our new salary 1316.43 to compare to the next table

2. Originally Posted by Gijoefan1975
Sue Tomlin is paid a salary of ​$440 per week plus 7​% of all sales over​$5000. She is single and claims two withholding allowances each one at $70.19 . Her deductions include​ FICA, Medicare, federal​ withholding, state disability​ insurance, state​ withholding, credit union savings of ​$50​, a Salvation Army contribution of ​$10​, and dues of ​$15 to a professional sales association. Find her net pay for a week in April during which she has sales of ​$12,938.00 with returns and allowances of ​$417.58. Use the percentage method of​ withholding, a FICA rate of 6.2​%, a Medicare rate of 1.45​%, an SDI rate of 1​%, and a state withholding tax of 3.4​%.

I think I have to remove the allowances of 417.58 from the 12,938.00 = 12520.20 then multiply new number by the .07 = 876.4294 round up = 876.43 then add new number to the 440.00 =1316.43 then subtract 2 (70.19) = 140.38 which gives our new salary 1316.43 to compare to the next table

So what is answer to the question - Find her net pay for a week in April ?

3. Originally Posted by Gijoefan1975
Sue Tomlin is paid a salary of ​$440 per week plus 7​% of all sales over​$5000. She is single and claims two withholding allowances each one at $70.19 . Her deductions include​ FICA, Medicare, federal​ withholding, state disability​ insurance, state​ withholding, credit union savings of ​$50​, a Salvation Army contribution of ​$10​, and dues of ​$15 to a professional sales association. Find her net pay for a week in April during which she has sales of ​$12,938.00 with returns and allowances of ​$417.58. Use the percentage method of​ withholding, a FICA rate of 6.2​%, a Medicare rate of 1.45​%, an SDI rate of 1​%, and a state withholding tax of 3.4​%.
I think this can be simplified (and made clearer!) this way:

Sue Tomlin is paid a salary of ​440 per week plus 7​% of all sales over​ $5000 during the week. She is single and claims a withholding allowance of$140.38.
Her deductions include​ FICA, Medicare, federal​ withholding, state disability​ insurance, and state​ withholding.
Also deducted is $​75 (credit union savings).**** Find her net pay for a week during which she has sales of ​$12,938.00 with returns and allowances of $​417.58. Use the percentage method of​ withholding, a FICA rate of 6.2​%, a Medicare rate of 1.45​%, an SDI rate of 1​%, and a state withholding tax of 3.4​%. ****You can forget about this one while doing the net pay calculation: just deduct it after everything else is done. Agree? 4. Originally Posted by Denis I think this can be simplified (and made clearer!) this way: Sue Tomlin is paid a salary of ​440 per week plus 7​% of all sales over​$5000 during the week.
She is single and claims a withholding allowance of $140.38. Her deductions include​ FICA, Medicare, federal​ withholding, state disability​ insurance, and state​ withholding. Also deducted is$​75 (credit union savings).****
Find her net pay for a week during which she has sales of ​$12,938.00 with returns and allowances of$​417.58.
Use the percentage method of​ withholding, a FICA rate of 6.2​%, a Medicare
rate of 1.45​%, an SDI rate of 1​%, and a state withholding tax of 3.4​%.

just deduct it after everything else is done.

Agree?

agreed times X2 I think it will work better here so if your cool with it I will look for your help here so I am not taking up more of your time? Thanks for being so helpful and so kind!!!

5. Originally Posted by Subhotosh Khan

So what is answer to the question - Find her net pay for a week in April ?
yep that is the question...but I am off by a certain number, and I couldn't figure out and still cannot figure out why...

6. After some googling of "returns and allowances" and
"withholding allowances", pretty sure it works like this:

Sales: 12,938.00 - 417.58 = 12,520.42
.07(12,520.42 - 5000.00) = 526.43
Earnings before deductions = 440.00 + 526.43 = 966.43

Fica, medicare, disability, state = 6.2 + 1.45 + 1 + 3.4 = 12.05%
966.43 - .1205(966.43) = 861.53

Federal tax charged on 966.43 - 140.38 = 826.05
Federal tax (per table) = 80.60 + .25(826.05 - 696.00) = 113.11

NET PAY = 861.53 - 113.11 - 75.00 = 673.42