Question

Helen mean receives a travel allowance of $180 each week from her company from time away from home. If this allowance is taxable and she has 24% income tax rate, what amount will she have to pay in taxes for this employee benefit? (Round your final answer to two decimal places)

Answer 1

The tax rate she needs to pay is 24% of the $180.

Then first, we convert the 24% to decimal, by dividing by 100:

`(24)/(100)=0.24`

Now we multiply the total amount by the percentage in decimal:

`0.24\cdot180=43.2`

The amount she will have to pay in taxes is $43.20