Fran Mallory is married, claims five withholding allowances, and earns $3,500 (gross) per month. In addition to Federal income tax (FIT), social security, and Medicare withholding, Fran pays 2.1% state income tax, and 1% for state disability insurance (both based on her gross income), plus an additional $43.11 for life insurance and $72.30 to the credit union. As payroll manager for Fran’s company, calculate her net take-home pay per month.

Solution:

Net take-home pay = 3500-3500*2.1%-3500*1%-43.11-72.30 = 3276.09

So her net take-home pay per month is $3276.09