Take-home pay A sales representative’s take-home
pay is found by subtracting all taxes and retirement
contributions from gross pay (which consists of salary
plus commission). Given the following information,
complete parts (a)–(c).
Salary 5 $300.00 Commission 5 $788.91
Retirement 5 5% of gross pay
Taxes: State 5 5% of gross pay
Local 5 1% of gross pay
Federal withholding 5
25% of (gross pay less retirement)
Federal social security and Medicare 5
7.65% of gross pay
(a) Find the gross pay.
(b) Find the amount of federal withholding.
(c) Find the take-home pay.