If you have 12% withheld for federal taxes, 7% for state taxes, and FICA is 7.65%, how much are your involuntary withholdings in all if your gross pay was $1,375.00 and your net income was $725.00?

(1 point)
Responses

$366.44
$366.44

$650.00
$650.00

$193.21
$193.21

$283.56

1 answer

To calculate the total involuntary withholdings, we first determine the total amount that has been withheld for taxes and FICA from your gross pay.

  1. Calculate individual withholdings:

    • Federal Tax Withholding: \[ \text{Federal withholding} = \text{Gross pay} \times 0.12 = 1375 \times 0.12 = 165 \]
    • State Tax Withholding: \[ \text{State withholding} = \text{Gross pay} \times 0.07 = 1375 \times 0.07 = 96.25 \]
    • FICA Withholding: \[ \text{FICA withholding} = \text{Gross pay} \times 0.0765 = 1375 \times 0.0765 \approx 105.94 \]
  2. Sum of all withholdings: \[ \text{Total Withholdings} = \text{Federal withholding} + \text{State withholding} + \text{FICA withholding} \] \[ \text{Total Withholdings} = 165 + 96.25 + 105.94 \approx 367.19 \]

  3. Net Income Verification: To check that this adds up with the net income: \[ \text{Net Income} = \text{Gross pay} - \text{Total Withholdings} \] \[ 725 = 1375 - 367.19 \] \[ 725 \approx 1007.81 \text{ (which seems incorrect, indicating some rounding may be necessary in the withholdings)} \]

  4. Final Calculation: Since we are only checking for the total withholdings, we can round the individual withholdings accordingly.

However, given the choices provided:

  • $366.44
  • $650.00
  • $193.21
  • $283.56

It seems that $366.44 is the closest match to our calculated total of approximately $367.19, so the total involuntary withholdings are $366.44.