The rate at which tax is deducted is given as 2
% = 2.5% = 0.025.
The question is asking us to find the Local Tax deducted on $456 .
To calculate the tax deducted we find 0.025 of $456 biweekly .
Or 0.025 of 456= 11.40.
The tax deducted is $11.40
The first option $11.40 is the right answer.