Lani earns $21,400 per year. She pays 7.5% of her gross income in
state and local taxes. How much is withheld from each paycheck for
these taxes if she is paid biweekly?
First, we need to calculate Lani's gross income per paycheck. To do this, we divide her annual salary by the number of pay periods in a year (26 for biweekly pay).
Gross income per paycheck = $21,400 / 26 = $823.08
Next, we need to find out how much is withheld from each paycheck for state and local taxes. To do this, we multiply Lani's gross income per paycheck by the tax rate (7.5% or 0.075).
Tax withheld per paycheck = $823.08 x 0.075 = $61.73
Therefore, Lani will have $61.73 withheld from each biweekly paycheck for state and local taxes.