Beth Pittman earns $12,558 per year. She is paid 52 times per year and claims 2 exemptions. If $8.85 in taxes is withheld from each paycheck, at what rate is she taxed?
The answer options are:
3.9%
4.2%
and
5.1%
12,558 / 52 = $241.50 per week
8.85 / 241.5 = 0.0366 = 3.7%
I've worked this problem two ways, and I still get 3.7%.
12,558/52=$241.50 per week
8.85/241.5=0.0366=3.9%
To find the tax rate, we need to determine the total amount of taxes withheld from Beth Pittman's annual salary and then divide it by her annual income.
First, let's calculate the total annual taxes withheld by multiplying the amount of tax withheld from each paycheck by the number of paychecks per year:
Total annual taxes withheld = $8.85/paycheck * 52 paychecks/year
Next, let's calculate her annual taxable income by subtracting the total exemptions from her annual salary:
Annual taxable income = Annual salary - (Exemptions * Exemption amount)
In this case, the exemption amount is generally dependent on the specific tax regulations in the given country, so it's necessary to know the exact amount of each exemption to carry out the computation.
Once we have the annual taxable income, we can calculate the tax rate by dividing the total annual taxes withheld by the annual taxable income and multiplying by 100 to get a percentage.
Since the exact exemption amount is not mentioned in the question, we cannot accurately determine the tax rate. Hence, we are unable to provide one of the answer options provided.
However, if the exemption amount is provided, the calculation above will allow finding the tax rate.