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. \( \$ 273.38 \)
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Beyond the Answer
Let's crunch the numbers! First, we calculate the Social Security tax: \( 6.2\% \) of \( \$ 815.70 \) is approximately \( \$ 50.67 \). Next, the Medicare tax: \( 1.45\% \) of \( \$ 815.70 \) is about \( \$ 11.81 \). Now, state's tax is calculated based on the federal tax amount, which amounts to \( 19\% \) of \( \$ 56 \), which is \( \$ 10.64 \). Adding up all these withholdings: - Federal Tax: \( \$ 56.00 \) - Social Security Tax: \( \$ 50.67 \) - Medicare Tax: \( \$ 11.81 \) - State Tax: \( \$ 10.64 \) Now, sum them up: \( 56 + 50.67 + 11.81 + 10.64 = 129.12 \). Now, rounding it to the nearest cent, we find that the total withheld is approximately \( \$ 129.12 \). This aligns closest with option b: \( \$ 129.04 \). **Answer: b. \( \$ 129.04 \)**
