Question

Anton McRainy’s gross pay as a landscape designer is $52,375 a year. The state income tax rate is 3% of taxable wages. Anton takes a married exemption of $4,000 and $2,000 for his child. How much does Anton’s employer withhold yearly from his gross earnings for state income tax?

A) $1,503.75
B) $1,561.25
C) $1,225.00
D) $1,687.50

Answer 1

Anton's employer will withhold $1,391.25 from his gross earnings for state income tax after considering his $6,000 exemption at a 3% tax rate.

Step-by-step explanation:

The question involves calculating state income tax withholding based on gross earnings and available exemptions. Firstly, we need to determine the taxable income by subtracting the exemptions from Anton McRainy's gross pay. Anton's exemptions total to $6,000 ($4,000 for married exemption + $2,000 for his child). So, the taxable income is $52,375 - $6,000 = $46,375. Now, we will calculate the state income tax by applying the 3% rate to the taxable income: $46,375 x 3% = $1,391.25. Therefore, Anton's employer will withhold $1,391.25 yearly from his gross earnings for state income tax.