17.1 Income and Payroll Taxes

Arman works in a state with no state income tax. He earns $625 each week. He pays $38.45 in other taxes. His pay after taxes is $499.61. How much federal income tax does he pay?

• $38.45

• $76.90

• $86.94

• $88.72

Communicate

Miranda earns $450.75 at her part-time job. She pays $98.12 in federal income tax and $12.00 in other taxes. How can you determine Miranda’s pay after taxes?

• Subtract the sum of the taxes from the total earnings.

• Subtract the amount earned from the sum of the taxes.

• Add all the taxes.

• Subtract only the federal income tax from the total earnings

Multi-Step

Joe has two part-time jobs. At his first job, he earned $200 and paid $42 in payroll tax. At his second job he earned $175 and paid $24 in payroll tax. What is his pay after taxes?

• $158

• $309

• $351

• $303

Mark’s pay after taxes is $855.08. If his total earnings are $1,100, how much does Mark pay in payroll tax?

• $1,100

• $144.02

• $244.92

• $855.08

Martina earns $4,000 per month. Each month, she pays $680 in federal income tax, $160 in state income tax, and $79 in other taxes. What is Martina’s pay after taxes each month?

• $3,160

• $3,081

• $3,761

• $2,981

Lacey earns $680 each week. She pays $91.80 in federal income tax. The other taxes are $17.00. Her pay after taxes is $547.40. How much does Lacey pay in state income tax?

• $74.80

• $38.60

• $115.60

• $23.80

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.

Multi-Step

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

Multi-Step

Brian works 24 hours this week. His earns $9.25 per hour. He pays $37.30 in payroll tax. He deposits half of his pay after taxes in his savings account. He deposits the other half of his pay after taxes in his checking account. How much money is deposited into each account?

• $184.70

• $129.65

• $92.35

• $46.55