Question

a highschool student working part-time as a cook had a gross income of $7650 last year. if his federal tax rate was %10 and his state rate was 5.3% what was the amount withheld from his pay last year in federal tax state tax and FICA combined?

Answer 1

Amount withheld from his pay last year in federal tax, state tax and FICA combined was $1755.68.

Explanation:

Student's gross income = $7650.00

federal tax rate = 10% of $7650

= 0.10 × 7650 = $765.00

State tax rate = 5% of $7650

= 0.053 × 7650 = $405.45

As we know FICA is comprised of taxes for social security (6.2%) and medicare (1.45%)

Let us find FICA tax 7.65% (6.2% + 1.45%)

= 7.65% of 7650 = 0.0765 × 7650 = $585.225

Let us add all the taxes

Total tax = 765 + 405.45 + 585.225 = $1755.675 rounded to $1755.68

Amount withheld from his pay last year in federal tax, state tax and FICA combined was $1755.68

Answer 2

$1755.68.

Explanation:

We have been given that a high school student working part-time as a cook had a gross income of $7650 last year. His federal tax rate was 10% and his state rate was 5.3%.

First of all let us find 15.3% of $7650 as the base amount of federal and state tax is same, so we can add both tax rates.

`\text{Amount of federal and state tax}=(15.3)/(100)* \$7650`

`\text{Amount of federal and state tax}=0.153* \$7650`

`\text{Amount of federal and state tax}=\$1170.45`

Since we know that current tax rate for social security is 6.2% the current rate for Medicare is 1.45%. So let us find 7.65% (6.2%+1.45%) of $7650.

`\text{Amount of FICA}=(7.65)/(100)* \$7650`

`\text{Amount of FICA}=0.0765* \$7650`

`\text{Amount of FICA}=\$585.225`

Now let us add amount of federal and state tax with FICA.

`\text{The amount withheld from student's pay last year}=\$585.225+\$1170.45`

`\text{The amount withheld from student's pay last year}=\$1755.675\approx \$1755.68`

Therefore, the the amount withheld from his pay last year in federal tax state tax and FICA combined was $1755.68.