Justin earns an annual salary of $48,000, which is paid monthly. This month Justin had the following deductions:
Federal and state income taxes
$650
Social Security and Medicare taxes
$248
Health insurance premiums
$350
Retirement plan contribution 5% of salary
What is Justin's net pay for the month?

First you have to find Justin's monthly salary. You do this by dividing his annual salary by 12 months. 48000/12 = 4000 This means Justin makes $4000 each month. Next we have to find what 5% of that is, in order to know how much his retirement plan contribution costs. To do this you divide 4000 by 100 to know how much 1% of his monthly salary is, and then you multiply that by 5 to know how much 5% of his monthly salary is. 4000/100 = 40 40x5 = 200 .We now know his retirement plan contribution each month costs $200. Now we need to know how much to subtract from his monthly salary to get his net pay for the month. We can do this by adding all of his monthly expenses together and then subtracting that total from 4000. 650+248+350+200 = 1448 4000-1448 = 2552 Justin's net pay for the month is $2552