Financial Literacy

Which statement about total earnings and pay after taxes is correct, if the payroll tax is withheld?

• Pay after taxes is greater than total earnings.

• Pay after taxes is less than total earnings.

• Total earnings and pay after taxes are the same.

• Total earnings are less than the pay after taxes.

Each week, Kelly pays $68.45 in federal income tax, $22.81 in state income tax, and $18.75 in other taxes. Which is the best estimate for the payroll tax Kelly pays each month?

• $440

• $110

• $280

• $360

Each week, Desiree earns $925 and pays $148 in payroll tax. How long does it take Desiree to earn at least $3,000 after taxes?

• 4 weeks

• 3 weeks

• 5 weeks

• 7 weeks

Mrs. Chan buys a new car for $21,000. She pays a sales tax of $0.06 for every $1. She pays a property tax of $16.80 on every $1,000 of the value. If the property tax is paid once a year, what are the total taxes on the car for the year?

• $1,260

• $352.80

• $1,612.80

• $22,612.80

Rex buys a flashlight for $44 and binoculars for $69. What is the total cost of Rex’s purchase if sales tax is $0.07 on every $1?

• $113.07

• $120.91

• $113.00

• $116.08

Some states, including Texas, have a sales tax holiday in which residents do not have to pay a sales tax for a few days each year. If the sales tax is $0.07 on every $1, how much could you save on a purchase of a $19 calculator during the sales tax holiday?

• $1.40

• $7.00

• $0.95

• $1.33

Rita’s gross income last month was $2,948.45. She paid $442.45 in payroll tax for the month. How can you find Rita’s net income for one week if there were four weeks in the month?

• Add the payroll tax to the gross income and multiply by 4.

• Subtract the payroll tax from the gross income and multiply by 4.

• Add the payroll tax to the gross income and divide by 4.

• Subtract the payroll tax from the gross income and divide by 4.

Jenna’s only source of income is from her job at a car wash, where she works 25 hours each week. She is paid $9.90 per hour. What is her net weekly income if she pays $30.70 in payroll tax each week?

• $247.50

• $216.80

• $278.20

• $217.20