William Bennett earns $12,800 per year. He is paid 12 times per year and claims 1 exemption. His state taxes him at a 3% rate. How much tax is withheld per pay period?
12,800 / 12 = 1,066.66667
1,066.66667 * 0.03 = ?
That doesn't count federal taxes.
To calculate the amount of tax withheld per pay period for William Bennett, we need to follow a few steps:
Step 1: Calculate the annual salary after considering exemptions.
William Bennett claims 1 exemption, so we can subtract the value of the exemption from his annual salary. The value of one exemption can vary depending on the tax laws of the specific state, so for the purpose of this calculation, we'll assume it's $1,000.
Annual salary after exemptions = $12,800 - $1,000 = $11,800
Step 2: Calculate the annual tax amount.
William's state taxes him at a rate of 3%. We can calculate the annual tax amount by multiplying the annual salary after exemptions by the tax rate.
Annual tax amount = $11,800 * 0.03 = $354
Step 3: Calculate the tax withheld per pay period.
Since William is paid 12 times per year, we can divide the annual tax amount by 12 to determine the tax withheld per pay period.
Tax withheld per pay period = $354 / 12 = $29.50 (rounded to the nearest cent)
Therefore, the tax withheld per pay period for William Bennett is $29.50.