Calculate Sergio's Net Annual Income

What is Sergio's net annual income before deductions?

a) $3,880.00
b) $1,249.29
c) $2,637.71
d) $1,226.24

Answer:

The amount of money Sergio made for the year before deductions are taken out is $19,738.

To calculate Sergio's net annual income, we need to subtract the deductions and taxes from his gross annual income. The Social Security deduction is 6.2% of the gross annual income, Medicare is 1.45% of the gross annual income, and federal and state taxes are 15% of the gross annual income.

Using the formula:

  1. Calculate the Social Security deduction: Gross Annual Income * 6.2% = $19,738 * 6.2% = $1,226.24
  2. Calculate the Medicare deduction: Gross Annual Income * 1.45% = $19,738 * 1.45% = $286.01
  3. Calculate the total tax deduction: Gross Annual Income * 15% = $19,738 * 15% = $2,960.70
  4. Calculate the net annual income: Gross Annual Income - (Social Security Deduction + Medicare Deduction + Total Tax Deduction) = $19,738 - ($1,226.24 + $286.01 + $2,960.70) = $15,265.05

Therefore, Sergio's net annual income before deductions is $15,265.05.

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