Question

Grayson lives and works in Indiana, which has a flat state income tax of 3.4%. If his annual salary is $49,255 and he gets paid once a month, how much is withheld from his gross income for state income tax each pay period?

Answer 1

139.55 is the correct answer

Answer 2

$139.56 is deducted from his gross income for state income tax each pay period .

Explanation:

As given

Grayson lives and works in Indiana, which has a flat state income tax of 3.4%. If his annual salary is $49,255 and he gets paid once a month .

3.4 % is written in the decimal form.

`= (3.4)/(100)`

= 0.034

Income tax price = 0.034 × Annual salary

= 0.034 × 49255

= $1674.67

As 1 year is consist of 12 months .

Thus

`Income\ tax\ paid\ in\ one\ month = (1674.67)/(12)`

= $139.56 (Approx)

Therefore $139.56 is deducted from his gross income for state income tax each pay period .