Question

Chuck has a gross pay of $815.70. By how much will Chuck’s gross pay be reduced if he has the following items withheld? federal tax of $56 Social Security tax that is 6.2% of his gross pay Medicare tax that is 1.45% of his gross pay state tax that is 19% of his federal tax

Answer 1

THE ANSWER IS B.

$129.04

Explanation:

Answer 2

Chuck has a gross pay of $815.70. His gross pay will be reduced by:

• Federal tax of $56;
• Social Security tax that is 6.2% of his gross pay;
• Medicare tax that is 1.45% of his gross pay;
• State tax that is 19% of his federal tax.

Let's count:

1. gross pay of $815.70 - 100%,

Social Security tax of $x - 6.2%.

Then

`(815.70)/(x)=(100)/(6.2) ,\\ \\815.70\cdot 6.2=x\cdot 100,\\ \\x=(815.70\cdot 6.2)/(100) =50.5734.`

2. gross pay of $815.70 - 100%,

Medicare tax of $y - 1.45%.

Then

`(815.70)/(y)=(100)/(1.45) ,\\ \\815.70\cdot 1.45=y\cdot 100,\\ \\y=(815.70\cdot 1.45)/(100) =11.82765.`

3. Federal tax of $56 - 100%,

State tax $z - 19%.

Then

`(56)/(z)=(100)/(19) ,\\ \\56\cdot 19=z\cdot 100,\\ \\z=(56\cdot 19)/(100) =10.64.`

4. Chuck’s gross pay will be reduced by

`\$56+\$50.5734+\$11.82765+\$10.64=\$129.04105\approx \$129.04.`