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?

Question

(1 point)
Responses

$650.00
$650.00

$193.21
$193.21

$366.44
$366.44

$283.56

Answer 1

To find the total involuntary withholdings, we first need to calculate the total amount withheld from the gross pay:

1. Calculate the individual tax withholdings:

   • Federal taxes: 12% of $1,375.00
   • State taxes: 7% of $1,375.00
   • FICA: 7.65% of $1,375.00

2. Calculating each withholding:

   • Federal Tax Withholding = 0.12 × $1,375.00 = $165.00
   • State Tax Withholding = 0.07 × $1,375.00 = $96.25
   • FICA Withholding = 0.0765 × $1,375.00 = $105.94

3. Total Withholdings:

   • Total Withholdings = Federal Tax + State Tax + FICA
   • Total Withholdings = $165.00 + $96.25 + $105.94 = $367.19

4. Verification of net income:

   • Net Income = Gross Pay - Total Withholdings
   • Net Income = $1,375.00 - $367.19 = $1,007.81

This indicates that there may be a mistake, as the net income given is $725.00.

5. To find the total amount withheld based on the net income provided:
   • Total Withholdings = Gross Pay - Net Income
   • Total Withholdings = $1,375.00 - $725.00 = $650.00

Based on the requested calculations and the choices provided, the total involuntary withholdings amount is: $650.00.