Chapter 2 Understanding Your Paycheck
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Checkpoint 2.1
Use the tax tables shown in Figures 2-2 and 2-3 for the following exercises.
Use 6.2% as the Social Security tax rate and 1.45% as the Medicare tax rate.
1. Thomas is a police dispatcher who earns $709.62 per week. He is single and
claims one withholding allowance. Determine his federal tax withholdings,
Social Security tax, and Medicare tax.
2. Britney is a private detective who earns $905.77 per week. She is single
and claims three withholding allowances. Determine her federal tax
withholdings, Social Security tax, and Medicare tax.
3. Jesus is an anthropologist who earns $1,098.75 per week. He is married
and claims three withholding allowances. Determine his federal tax
withholdings, Social Security tax, and Medicare tax.
4. Annika works as an optometrist. She earns $4,447.92 semimonthly. She lives
in a state with a fl at-rate state income tax of 5.3%. Determine the amount of
state income tax that is withheld from each of Annika’s paychecks.
5. Aziz works as a bookkeeper and earns $685 weekly. He is single, claims zero
withholdings, and lives in a state with a fl at-rate state income tax of 3.07%.
Determine Aziz’s net pay.