Mike Mays is a waiter at the Dixie Hotel. In his first weekly pay in March, he earned $$360\mathrm{.}00$ for the $40$ hours he worked. In addition, he reports his tips for February to his employer $($$$700\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 $(-).$ Round interim amounts to two decimal places. Use these values in subsequent computations then round final answer to two decimal places.

As we go to press, the federal income tax rates for $2023$ are being determined by budget talks in Washington, and are not available for publication. For this edition, the $2022$ federal income tax tables for Manual Systems with Forms W$-4$ From $2020$ or Later with Standard Withholding and $2022$ FICA rates have been used.

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

Gross pay $fill in the blank $1$

$360$

Federal income tax fill in the blank $2$

$-60$

Social security taxes $-$ OASDI fill in the blank $3$

$-65\mathrm{.}72$

Social security taxes $-$ HI fill in the blank $4$

$-15\mathrm{.}37$

State income tax fill in the blank $5$

$-21\mathrm{.}20$

Net pay $fill in the blank $6$

$197\mathrm{.}71$

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

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