Sean Matthews is a waiter at the Duluxe Lounge. In his first weekly pay in March, he earned $300.00 for the 40 hours he worked. In addition, he reports his tips for February to his employer ($500.00), 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, single, 4 allowances), social security taxes, and state income tax (0.01).

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Asked Oct 21, 2019
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Sean Matthews is a waiter at the Duluxe Lounge. In his first weekly pay in March, he earned $300.00 for the 40 hours he worked. In addition, he reports his tips for February to his employer ($500.00), 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, single, 4 allowances), social security taxes, and state income tax (0.01).

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Expert Answer

Step 1

In this question,  federal income tax year didn't mentioned. I am assuming for the year 2019.

Note: Income tax witholdi...

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