Question

Tim Worker estimates his taxable income will be $7,000. He is paid twice a month or 24 times a year. Because Tim has only one source of income, he uses the Tax Tables to estimate how much will be deducted from his pay for withholding.

1. Finds the tax rate for his income level. = %

2. Enters the base amount. = $

3. Enters the amount of tax owed. = $

4. Divides by = $

Please help and answer question using numbers 1,2,3,4
Thank u will give u good rating

Answer 1

1. 10%
2. 7000
3. 700
4. 29.17

Explanation:

1. Worker's income does not exceed the value on the first line (7825), so he pays 10% of his income.

__

2. The base for computing the percentage tax is the amount over 0, which is $7000.

__

3. The tax owed is ...

10% × $7000 = $700

__

4. This is divided by the number of paychecks to find the tax withheld from each paycheck.

$700/24 ≈ $29.17

_____

Comment on withholding amount

A good payroll department will keep track of the pennies and make sure the withholding adds up to the correct amount. That is, Worker's withholding will likely be 29.17 for two paychecks, and 29.16 for the third of each three paychecks.