Chapter 2 Review - Financial Math

Tonya Westin’s gross pay for the week is $357.89. She is married and claims no allowances. What amount will be withheld for Federal Income Tax?

• $14

• $15

• $19

• $20

Dwight Fisher earns $42,500. He is married with three dependents which gives him a $10,000 exemption. His state had an income tax rate of 4.5%. How much does Dwight’s employer withhold annually from his gross earnings for state income tax?

• $450

• $1,230.90

• $1,462.50

• $1,912.50

Reena Garcia is a sales manager. She is single and takes a $2,000 exemption. The state income tax rate is 3%. If her employer withholds $3,900 for state income tax annually, find her annual salary.

• $85,400

• $101,250

• $125,600

• $132,000

Mary Jane Porter has an annual gross pay of $32,100. Her exemptions total $3,500. The state tax on the first $5,000 is 1.5% and on amounts over $5,000 is 4.2%. Find the total tax withheld.

• $1,009.85

• $1,066.20

• $1,213.20

• $1,430.85

Kyle Gruber’s gross pay this month is $5,432.50. His earnings to date for the year total $12,300.75. How much does his employer deduct from his paycheck this month for Social Security?

• $336.82

• $356.59

• $511.85

• $575.60

Sui Chun’s gross pay last week was $2,350. Her earnings to date for the year are $43,500. How much did her employer deduct from her paycheck last week for Medicare?

• $34.08

• $47.00

• $58.75

• $65.90

Tamara Matta’s annual group insurance costs $5,800, and her company pays 75% of the cost. How much does Tamara pay monthly for insurance?

• $100.90

• $120.83

• $280.50

• $362.50

Danford Kayne pays $231.60 per month for his group medical coverage. His employer pays 35% of the cost. How much is the annual premium for Danford’s health insurance?

• $2,779.20

• $3,843.10

• $4,275.69

• $5,904.33

Erika Morley’s gross weekly salary is $825.75. She is married with no dependents. The following deductions are made each week: $31.00 for federal tax; 6.2% for Social Security and 1.45% for Medicare; $42.50 for medical insurance. The state tax rate is 1.5% of gross. What is Erika’s net pay?

• $543.96

• $550.76

• $612.09

• $676.69

The deductions from Allana Cole’s monthly pay are federal income tax of $98, state income tax of 2.1%, city income tax of 1.1%, Social Security of 6.45%, and Medicare of 1.45%. Her monthly net pay is $2,754.80. Find Allana’s monthly gross pay.

• $2,900

• $3,200

• $3,500

• $4,000