Question

Lucy earns $326.87 each week. The federal government withholds 18% of
that for federal income tax. How much is withheld from her pay annually
for federal income tax?
a. $58.84
b. $2,967.05
c. $13,937.74
d. $3,059.50

Answer 1

To find out how much is withheld annually for federal income tax, we need to first calculate how much is withheld each week.

18% of $326.87 = $58.84

So $58.84 is withheld from Lucy's pay each week for federal income tax. To find out how much is withheld annually, we can multiply this by the number of weeks in a year:

$58.84 x 52 = $3,059.68

Therefore, the answer is d. $3,059.50 (rounded to the nearest cent).