Question

You are paid $11.75/hr. You work 40 hr/wk. Your deductions are FICA (7.65%), Federal tax withholding (10.75%), and state tax withholding (7.5%)

Answer 1

full question (please make sure to include the whole question next time)

You are paid $11.75/hr. You work 40 hr/wk. Your deductions are FICA (7.65%), Federal tax withholding (10.75%), and state tax withholding (7.5%)
1) Assuming you budget a month as 4 weeks, how much is your total realized income, fixed expenses, and discretionary expenses.
2) If you are able to work 20 hours of overtime the next month and are paid 1.5 times your regular rate, how does this change your budget for that month?
3) How much can you put towards savings each month if you eliminated your discretionary expenses?

Answer 2

I'm not sure about some of the minor details but I can at least help you get started

1) 4 weeks, 40 hours a week, $11.75/hr ---> multiply these together to find your total gross income after the month

deduct (7.65 + 10.75 + 7.5)% of the total to account for taxes

2. add on 20 hours of income at 1.5 * ($11.75) and deduct the tax like before. your monthly budget will increase by this amount.

3. double check with your textbook, but a rule of thumb is to budget 30% towards discretionary expenses. It's not 100% clear whether they want you to use the original or overtime pay, but regardless, you'd simply calculate 30% of your income after taxes.