Question

A marketing executive earns an annual salary of $78,300 and she contributes $6500 per year to her 401 (k) plan. if she has a required deduction for income taxes (federal state and local combined) of 27% of income how much is withheld in income taxes per year

a- 19,386
b-21,114
c-22,896
d-17,550

Answer 1

The income tax withheld per year from the marketing executive's annual salary after her 401(k) contribution is $19,386.

Step-by-step explanation:

To determine the amount of income tax withheld from a marketing executive's annual salary, we first need to find her taxable income. Since she contributes $6,500 to her 401(k) plan, this amount is deducted from her gross salary before taxes. Therefore, her taxable income would be:

Gross Salary - 401(k) contribution = Taxable Income

$78,300 - $6,500 = $71,800

Now, we calculate the income tax by applying the 27% tax rate to her taxable income:

Taxable Income x Tax rate = Income tax withheld

$71,800 x 0.27 = $19,386

The amount of income tax withheld per year from the marketing executive's salary is $19,386.

Answer 2

With the assumption being made that the 401-k deductions are pre-tax deductions your calculation is as follows:

78,300 - 6,500 = 71,800 (this is your new taxable value)

71,800 * 0.27 = 19,386 (This is the amount that will be withheld in income taxes per year.

Your answer is A.