Maribel's city imposes a tax that is 40% of the state tax she pays. Her taxable income is $198.50 per week. Her state imposes tax at a rate of 5%. How much state and local tax is withheld from her weekly pay?
198.50 * 0.05 = $9.925
$9.925 * 0.4 = $3.97
I think you can take it from here.
William Bennett earns $12,800 per year. He is paid 12 times per year and claims 1 exemption. His state taxes him at a 3% rate. How much tax is withheld per pay period?
To calculate how much state and local tax is withheld from Maribel's weekly pay, we need to follow these steps:
Step 1: Calculate the state tax.
Maribel's taxable income is $198.50 per week, and the state tax rate is 5%. To calculate the state tax, we can use the formula:
State tax = taxable income * state tax rate
State tax = $198.50 * 0.05
Step 2: Calculate the local tax.
The local tax is 40% of the state tax. To calculate the local tax, we can use the formula:
Local tax = state tax * 0.4
Step 3: Calculate the total tax withheld.
The total tax withheld is the sum of the state tax and the local tax:
Total tax withheld = state tax + local tax
Let's calculate it:
Step 1:
State tax = $198.50 * 0.05
State tax = $9.925
Step 2:
Local tax = $9.925 * 0.4
Local tax = $3.97
Step 3:
Total tax withheld = $9.925 + $3.97
Total tax withheld = $13.895
Therefore, the total state and local tax withheld from Maribel's weekly pay is $13.895.