Muhammad Chabali earns $13,600 per year. He is paid 12 times per year and claims 2 exemptions. His city and state combined tax him at a rate of 10%. How much tax is withheld per pay period?
Tax = 0.10 * 13600 = 1360/yr
Tax = 1360 / 12mo. = 113.33 per pay period.
100
To calculate how much tax is withheld per pay period for Muhammad Chabali, we need to determine his gross pay per pay period and then apply the tax rate to it.
First, let's calculate Muhammad's gross pay per pay period. Since he is paid 12 times per year, we divide his annual salary by 12:
Gross pay per pay period = Annual salary / Number of pay periods per year
= $13,600 / 12
= $1,133.33
Next, let's calculate the tax withheld per pay period. Since Muhammad claims 2 exemptions and his city and state tax rate is 10%, we need to subtract the exemptions and then apply the tax rate to the remaining amount:
Tax withheld per pay period = (Gross pay per pay period – Exemptions) * Tax rate
= ($1,133.33 – 2) * 0.10
= $1,131.33 * 0.10
= $113.13
Therefore, the tax withheld per pay period for Muhammad Chabali would be $113.13.