Question

PLEASE HELP!!!!!

Looking at her paycheck, Rhonda notices that $30.56 was withheld from her last paycheck for state income stax while $122.25 was withheld for federal income tax. She knows that she indicated on her employment paperwork to set her state withholding at 21% of the federal withholding. What should Rhonda be thinking?
a.
The state withholding is correct, the correct amount is being withheld.
b.
The state withholding is too low, too little is being withheld.
c.
The state withholding is too high, too much is being withheld.
d.
She should not have any money withheld by the state since she is having federal taxes withheld.

Answer 1

The state withholding is too high, too much is being withheld.

Explanation:

Answer 2

The state withholding is 21% of the Federal withholding.
Since the state withholding was $122.25, the state withholding should be 0.21 x $122.25 = $25.67

Since $30.56 was withheld for state tax, then she must be thinking that the state withholding is too high, hence too much is being withheld.

Thus, option c is the correct answer.