Question

Chuck has a gross pay of $815.70. By how much will Chuck’s gross pay be reduced if he has the following items withheld?
federal tax of $56
Social Security tax that is 6.2% of his gross pay
Medicare tax that is 1.45% of his gross pay
state tax that is 19% of his federal tax
a.
$73.04
b.
$129.04
c.
$235.51
d.
$273.38

Answer 1

Compute each withholding and add them.

- Federal: $56.00
- Social Security: 6.2% of 815.70 = 0.062 × 815.70 = $50.5734 ≈ $50.57
- Medicare: 1.45% of 815.70 = 0.0145 × 815.70 = $11.82765 ≈ $11.83
- State: 19% of federal = 0.19 × 56 = $10.64

Total ≈ 56.00 + 50.57 + 11.83 + 10.64 = $129.04

Answer: b. $129.04