Maggie Vitteta, single, works 40 hours per week at $13 an hour. How much is taken out for federal income tax with one withholding exemption? (Assume the overtime for each employee is a time-and-a-half rate after 40 hours.) (Round your answer to the nearest cent.)
$1,068.00
To calculate the amount taken out for federal income tax with one withholding exemption for Maggie Vitteta, we need to determine her gross income first.
Maggie Vitteta's regular pay per week is calculated by multiplying her hourly rate ($13) by the number of hours she works per week (40), which is $520.
To calculate her overtime pay, we need to determine how many overtime hours she worked. If Maggie Vitteta works more than 40 hours in a week, we subtract 40 from the total number of hours she worked to find out the overtime hours.
Let's assume Maggie Vitteta worked 45 hours in a week. So, 45 - 40 = 5 hours of overtime.
To calculate Maggie Vitteta's overtime pay, we multiply her overtime hours (5) by her hourly rate ($13) by the overtime rate of 1.5. This gives us $97.50.
Now, we can calculate Maggie Vitteta's gross income by adding her regular pay ($520) and her overtime pay ($97.50).
Gross income = Regular pay + Overtime pay
= $520 + $97.50
= $617.50
With one withholding exemption, we can consult the tax withholding tables published by the Internal Revenue Service (IRS) to determine the federal income tax rate.
Let's assume that the federal income tax rate for a gross income of $617.50 and one withholding exemption is 15%.
To calculate the amount taken out for federal income tax, we multiply the gross income ($617.50) by the tax rate (15%) to find the amount.
Amount taken out for federal income tax = Gross income × Tax rate
= $617.50 × 0.15
Rounding this amount to the nearest cent, we get the final answer.
To calculate the federal income tax withheld for Maggie Vitteta, we need to determine her gross pay, taxable income, and then apply the appropriate tax rate.
Step 1: Calculate regular pay:
Maggie works 40 hours per week at a rate of $13 per hour.
Regular pay per week = 40 hours × $13/hour = $<<40*13=520>>520
Step 2: Calculate overtime pay:
Maggie does not work any overtime hours, so her overtime pay is $0.
Step 3: Calculate total pay:
Total pay per week = Regular pay + Overtime pay
Total pay per week = $520 + $0 = $520
Step 4: Calculate taxable income:
Taxable income is the total pay minus any deductions or exemptions. Since Maggie has one withholding exemption, we can subtract the exemption amount from her total pay.
Exemption amount = $4,300 (for the year 2021, assuming no other deductions)
Taxable income = Total pay - Exemption amount
Taxable income = $520 - $4,300 = -$3,780
Step 5: Calculate federal income tax withheld:
Since Maggie's taxable income is negative, no federal income tax will be withheld.
Therefore, no amount will be taken out for federal income tax for Maggie Vitteta.