Josiah's salary as a new hire is $89,250 (gross). Of course, his take-home pay will be quite a lot less than his gross pay. We will roughly estimate how much he will pay in taxes. Medicare and Social Security taxes (FICA) consume about 6% of your gross pay. Calculate 6% of Josiah's gross pay to estimate his FICA tax. For single people with no dependents, state and federal income tax usually consume about 20% of gross income. Calculate 20% of Josiah's gross pay to estimate his income tax. Calculate the total combined tax amount. Subtract the tax amounts you calculated from Josiah's gross pay to estimate his net annual pay, then divide by 12 for his net monthly pay. Note that tax rates are different for various family situations, so these estimates may not apply to you. How much should Josiah be spending each month on needs, wants, and savings? Needs should consume no more than 50% of his net pay. How much is that? Wants should consume about 30% of his net pay. How much is that? Savings should consume at least 20% of his net pay. How much is that