How much combined tax should be withheld from the paycheck of a single employee earning $3,185 per month and claiming zero withholding allowances?
655.27
To determine the combined tax that should be withheld from the paycheck of an employee earning $3,185 per month with zero withholding allowances, you need to consider the employee's tax rate and any applicable deductions or exemptions.
1. First, you need to find the employee's annual income. Multiply the monthly income by 12 (number of months in a year):
$3,185 * 12 = $38,220 (annual income)
2. Determine the taxable income by subtracting any deductions or exemptions. For this case, since the employee claims zero withholding allowances, we assume there are no additional deductions or exemptions.
3. Find the tax bracket for the employee's taxable income. Tax brackets vary depending on the country and tax system. I'll assume we're using the tax brackets for the United States for reference. You can find the latest tax brackets on the IRS website or consult a tax professional.
4. Let's assume that the employee's taxable income falls into the 22% tax bracket. Multiply the taxable income by the tax rate:
$38,220 * 0.22 = $8,408.40 (tax liability)
5. Finally, divide the annual tax liability by 12 to find the monthly withholding amount:
$8,408.40 / 12 = $700.70 (monthly tax withholding)
Therefore, the combined tax that should be withheld from the employee's paycheck would be approximately $700.70 per month. Keep in mind that this calculation is based on the assumptions made and the tax regulations applicable to the specific country and tax system.