Question

Kerry McCarthy is a news traffic reporter with an annual gross pay of $44,500. He is single and is paid on a monthly basis. How much is withheld monthly for state taxes? (Provide a step-by-step explanation)

a) $375
b) $500
c) $750
d) $1,000

Answer 1

The monthly amount withheld for state taxes from Kerry McCarthy's gross pay is $111.25.

Step-by-step explanation:

To calculate the monthly state taxes withheld from Kerry McCarthy's gross pay, we need to determine the percentage of their annual gross pay that goes towards state taxes and divide it by 12 to get the monthly amount. Let's assume that Kerry McCarthy's state tax rate is 3% of their annual gross pay. First, we calculate the amount of state taxes deducted annually: $44,500 x 0.03 = $1,335. Then, we divide this amount by 12 to calculate the monthly state tax withholding: $1,335 / 12 = $111.25.

Therefore, the amount withheld monthly for state taxes is $111.25.