Answer :
Answer:
$1755.68.
Step-by-step explanation:
We have been given that a high school student working part-time as a cook had a gross income of $7650 last year. His federal tax rate was 10% and his state rate was 5.3%.
First of all let us find 15.3% of $7650 as the base amount of federal and state tax is same, so we can add both tax rates.
[tex]\text{Amount of federal and state tax}=\frac{15.3}{100}\times \$7650[/tex]
[tex]\text{Amount of federal and state tax}=0.153\times \$7650[/tex]
[tex]\text{Amount of federal and state tax}=\$1170.45[/tex]
Since we know that current tax rate for social security is 6.2% the current rate for Medicare is 1.45%. So let us find 7.65% (6.2%+1.45%) of $7650.
[tex]\text{Amount of FICA}=\frac{7.65}{100}\times \$7650[/tex]
[tex]\text{Amount of FICA}=0.0765\times \$7650[/tex]
[tex]\text{Amount of FICA}=\$585.225[/tex]
Now let us add amount of federal and state tax with FICA.
[tex]\text{The amount withheld from student's pay last year}=\$585.225+\$1170.45[/tex]
[tex]\text{The amount withheld from student's pay last year}=\$1755.675\approx \$1755.68[/tex]
Therefore, the the amount withheld from his pay last year in federal tax state tax and FICA combined was $1755.68.
Answer:
Amount withheld from his pay last year in federal tax, state tax and FICA combined was $1755.68.
Step-by-step explanation:
Student's gross income = $7650.00
federal tax rate = 10% of $7650
= 0.10 × 7650 = $765.00
State tax rate = 5% of $7650
= 0.053 × 7650 = $405.45
As we know FICA is comprised of taxes for social security (6.2%) and medicare (1.45%)
Let us find FICA tax 7.65% (6.2% + 1.45%)
= 7.65% of 7650 = 0.0765 × 7650 = $585.225
Let us add all the taxes
Total tax = 765 + 405.45 + 585.225 = $1755.675 rounded to $1755.68
Amount withheld from his pay last year in federal tax, state tax and FICA combined was $1755.68