Answer:
- 10%
- 7000
- 700
- 29.17
Step-by-step explanation:
1. Worker's income does not exceed the value on the first line (7825), so he pays 10% of his income.
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2. The base for computing the percentage tax is the amount over 0, which is $7000.
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3. The tax owed is ...
10% × $7000 = $700
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4. This is divided by the number of paychecks to find the tax withheld from each paycheck.
$700/24 ≈ $29.17
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<em>Comment on withholding amount</em>
A good payroll department will keep track of the pennies and make sure the withholding adds up to the correct amount. That is, Worker's withholding will likely be 29.17 for two paychecks, and 29.16 for the third of each three paychecks.