Employee's Earnings statement Name: Martin Fischer
Earnings
Regular Pay- $225.86 Overtime pay- $88.90 Gross Pay-$314.76 Total Deductions-$107.95 Net Pay-$206.81
Taxes Withheld
Federal State Local FICA Other
$48.20 $6.88 $4.55 $23.64 $0.00
Personal Deductions
Pension-$12.55 Union Dues-$2.45 Insurance- $1.88 Charity Appeals-$0.00 Savings-$5.00 Other-$2.80
At what rate are Martin's Federal taxes withheld?
Fed. Tax = 48.20 / 314.76 = 0.153 = 15.3 % of his gross.
What was Martin's total pay before deductions? $314.76 $88.90
$225.86
1,235.60
To determine the rate at which Martin's Federal taxes are withheld, we need to calculate the percentage of Federal taxes withheld from his Gross Pay.
First, let's identify the amount of Federal taxes withheld from Martin's paycheck, which is given as $48.20 in the Earnings statement.
Next, we need to find the Gross Pay, which is also provided in the Earnings statement as $314.76.
To calculate the rate, divide the amount of Federal taxes withheld by the Gross Pay, and then multiply by 100 to get the percentage:
Rate = (Federal taxes withheld / Gross Pay) * 100
Let's perform the calculation:
Rate = ($48.20 / $314.76) * 100
Rate = 0.153 * 100
Rate ≈ 15.3%
Therefore, Martin's Federal taxes are withheld at a rate of approximately 15.3%.