Lucy earns $326.87 each week. The federal government withholds 18% of
that for federal income tax. How much is withheld from her pay annually
for federal income tax?
that would be 18% of a year's pay (52 weeks), or
0.18 * 52 * 326.87
To calculate how much is withheld from Lucy's pay annually for federal income tax, you need to multiply her weekly earnings by the withholding rate of 18%, and then multiply that amount by the number of weeks in a year.
Step 1: Calculate the amount withheld each week
Lucy earns $326.87 each week.
Amount withheld each week = Weekly earnings * Withholding rate
= $326.87 * 18%
= $326.87 * 0.18
= $58.84 (rounded to two decimal places)
Step 2: Calculate the amount withheld annually
There are 52 weeks in a year.
Amount withheld annually = Amount withheld each week * Number of weeks in a year
= $58.84 * 52
= $3,060.68
Therefore, Lucy will have $3,060.68 withheld from her pay annually for federal income tax.