5 - Net Pay Test REVIEW.doc - Name Date Business Math...

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Name: ________________________________________ Date: ________________ Business Math, Period ________ Mrs. Cloghessy B USINESS M ATH U NIT R EVIEW C HAPTER 2: N ET P AY 2-1: Federal Income Tax Employers are required by law to withhold a certain amount of your pay Must use Tax Tables to determine FIT withheld The amount withheld depends on: o Income o Marital Status o Withholding Allowances Find the federal withholding tax using the wage bracket method for each of the following employees: 1. B. Mazo:2 withholding allowances, single, $315.82 weekly earnings $___________ 2. S. Lee: 2 withholding allowances, married, $675.25 weekly earnings $___________ 3. A. Arnold: 3 withholding allowances, married, $3210.55 monthly earnings $___________ 4. Gabriella Montanaro is a single college student making $132.45 a week at the campus book store. She claims 1 allowance. a) What amount is withheld from her weekly check for federal income tax? $___________ b) What amount is withheld annually for federal income tax? $___________ 5. Matteo Munoz is married with a 7 month old son. He works at a sporting goods store and earns $532.75 a week, and claims 3 allowances on his W-4. a) What amount is withheld weekly for federal income tax? $___________ b) If Matteo wanted the most tax taken out of his paycheck, what number of exemptions should he claim on his W-4? __________ Business Math Chapter 2 Review P a g e | 1
2-2: State Income Tax In most states, the tax withheld is a percent of your taxable wages. Use the personal exemption amounts below to answer questions 6-8. PERSONAL EXEMPTIONS Single – $1,500 Married – $3,000 Each Dependent – $700 6. Tyrese Ramseur earns $76,000 a year and he’s single. The state tax rate is 4.75%. How much income tax is withheld? 7. Scott Amato is a physical therapist earning $79,830 a year. He is single and takes care of his elderly mother.

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