Jim's bi-weekly gross pay is $1120. He automatically has 25% of his paycheck go into his retirement account. They also take $100.00 out of each paycheck for taxes. After money is taken out for retirement and taxes, how much money will be on Jim's paycheck? Give me reasons, before answering the question
He has 25% of his take - home pay automatically enrolled into his 401k so that's .25 * 1120 = $280.00. His take - home pay is $1120.00 and $280.00 is taken out for retirement so that leaves 1120 - 280 = $840.00. They also take $100.00 out of his paycheck for taxes so his paycheck will be issued for 840 - 100 = $740.00. So the final answer is 740.