Justin Matthews is a waiter at the Duluxe Lounge. In his first weekly pay in March, he earned $$300\mathrm{.}00$ for the $40$ hours he worked. In addition, he reports his tips for February to his

employer $($ $$500\mathrm{.}00),$ and the employer withholds the appropriate taxes for the tips from this first pay in March.

Calculate his net take$-$home pay assuming the employer withheld federal income tax $($wage$-$bracket, married filing jointly$),$ social security taxes, and state income tax $(2\%).$

Enter deductions beginning with a minus sign $(-).$

As we go to press, the federal income tax rates for $2024$ are being determined by budget talks in Washington, and are not available for publication. For this edition, the

$2023$ federal income tax tables for Manual Systems with Forms W$-4$ From $2020$ or Later with Standard Withholding and $2023$ FICA rates have been used.

Click here to access the Wage$-$Bracket Method Tables.

Gross pay

Federal income tax

Social security taxes $-$ OASDI

Social security taxes $-$ HI

State income tax

Net pay

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Calculate net pay, when gross pay includes wages and tips. Use Wage$-$Bracket Tables to calculate federal income taxes.