Question

Nehru Patel earns $42,500 annually as a new staff attorney. He is single. The state tax rate in his state is 3.5 percent of taxable income. What amount is withheld from his monthly pay for state income tax?

Answer 1

To determine state tax withheld from Nehru Patel's monthly pay, multiply his annual income of $42,500 by the state tax rate of 3.5% to get the annual tax amount of $1,487.50, and then divide by 12, which results in a monthly withholding of $123.96 for state income tax.

Step-by-step explanation:

Nehru Patel earns $42,500 annually as a new staff attorney, and he needs to calculate how much is withheld for state income tax at a rate of 3.5%. To find the monthly state tax deduction, we first calculate his annual state tax by multiplying his annual income by the state tax rate then divide by 12 for the monthly amount.

The annual state tax calculation is as follows:
Annual State Tax = Annual Income × State Tax Rate
Annual State Tax = $$42,500 × 0.035
Annual State Tax = $$1,487.50

To find the amount withheld from his monthly pay for state income tax:
Monthly State Tax Withheld = Annual State Tax ÷ 12
Monthly State Tax Withheld = $$1,487.50 ÷ 12
Monthly State Tax Withheld = $$123.96

Therefore, the amount withheld from Nehru's monthly pay for state income tax is $$123.96.