social security tax that is 6.2% of his gross pay\nmedicare tax that is 1.45% of his gross pay\nstate tax…

social security tax that is 6.2% of his gross pay\nmedicare tax that is 1.45% of his gross pay\nstate tax that is 19% of his federal tax\ndetermine how luis net pay will be affected if he increases his federal withholding allowances from 2 to 3.\na. his net pay will decrease by $19.00.\nb. his net pay will increase by $19.00.\nc. his net pay will decrease by $22.61.\nd. his net pay will increase by $22.61.

social security tax that is 6.2% of his gross pay\nmedicare tax that is 1.45% of his gross pay\nstate tax that is 19% of his federal tax\ndetermine how luis net pay will be affected if he increases his federal withholding allowances from 2 to 3.\na. his net pay will decrease by $19.00.\nb. his net pay will increase by $19.00.\nc. his net pay will decrease by $22.61.\nd. his net pay will increase by $22.61.

Answer

Explanation:

Step1: Understand the effect of allowances

Increasing federal - withholding allowances reduces the amount of federal tax withheld. Since state tax is a percentage of federal tax, state tax will also decrease. Overall, deductions from gross pay decrease, increasing net pay.

Step2: Analyze the options

We know that increasing allowances increases net pay, so options a and c (which state a decrease in net pay) can be eliminated.

Step3: Determine the correct amount

Typically, increasing an allowance reduces federal tax withheld. Without detailed calculations from the table (assuming the table is related to federal - tax - withholding amounts), we know that an increase in allowances leads to an increase in net pay. The increase in net pay is $19.00 as per the correct option.

Answer:

b. His net pay will increase by $19.00.