Question

chuck has a gross pay of $815.70. by how much will chucks gross pay be reduced if he has the following items withheld?
federal tax of $56
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 19% of his federal tax
a $73.04
b $129.04
c $235.51
d $273.38
please select the best answer from the choices provided

Explanation:

Step1: Calculate Social Security tax

Social Security tax = $815.70 \times 6.2\% = 815.70 \times 0.062 = 50.5734$

Step2: Calculate Medicare tax

Medicare tax = $815.70 \times 1.45\% = 815.70 \times 0.0145 = 11.82765$

Step3: Calculate state tax

State tax = $56 \times 19\% = 56 \times 0.19 = 10.64$

Step4: Sum all withheld amounts

Total reduction = $56 + 50.5734 + 11.82765 + 10.64$
$= 56 + 50.5734 = 106.5734$
$= 106.5734 + 11.82765 = 118.40105$
$= 118.40105 + 10.64 = 129.04105 \approx 129.04$

Answer:

b. $129.04$