Question

Marquis has a gross pay of $816. By how much will his gross pay be reduced if Marquis has the following items withheld? federal tax of $92 Social Security tax that is 6.2% of his gross pay Medicare tax that is 1.45% of his gross pay state tax that is 22% of his federal tax

a. $82.66
b. $129.13
c. $164.01
d. $174.66

Answer 1

federal tax $92
SS Tax 50.59
Medicare Tax 11.83
State Tax 20.24

$174.66

Answer 2

The correct option will be: d. $174.66

Explanation:

Marquis has a gross pay of $816

Amount of Federal tax is $92

Social Security tax is 6.2% of his gross pay. So, the amount of Social Security tax will be:
`(6.2\% *\$816)= (0.062*\$816)=\$50.592`

Medicare tax that 1.45% of his gross pay. So, the amount of Medicare tax will be:
`(1.45\%*\$816)=(0.0145*\$816)=\$11.832`

State tax is 22% of his Federal tax. So, the amount of State tax will be:
`(22\%*\$92)=(0.22*\$92)=\$20.24`

Thus, the total amount of all taxes deducted
`=(92+50.592+11.832+20.24) dollar=174.664 \approx 174.66` dollar.

So, his gross pay will be reduced by $174.66