Dawn earns $16,500 per year. She pays 9.5% of her gross income in
state and local taxes. How much is withheld from each paycheck for
these taxes if she is paid biweekly?
Divide $16,500 by 26 to get gross amount per paycheck. Multiply that by .095 to get amount withheld.
I hope this helps.
To calculate the amount withheld from each biweekly paycheck for state and local taxes, we need to follow these steps:
Step 1: Determine the gross income per pay period.
To calculate the gross income per pay period, divide the annual salary by the number of pay periods in a year. Since Dawn is paid biweekly, there are 26 pay periods in a year:
Gross Income per Pay Period = Annual Salary / Number of Pay Periods
Gross Income per Pay Period = $16,500 / 26
Gross Income per Pay Period = $634.62 (rounded to the nearest cent)
Step 2: Calculate the amount withheld for state and local taxes.
To find out the amount withheld for state and local taxes, multiply the gross income per pay period by the tax rate, which is 9.5%:
Amount Withheld for Taxes = Gross Income per Pay Period * Tax Rate
Amount Withheld for Taxes = $634.62 * 9.5%
Amount Withheld for Taxes = $60.39 (rounded to the nearest cent)
Therefore, Dawn will have $60.39 withheld from each biweekly paycheck for state and local taxes.