Use the Percentage Method of Withholding to Find the Federal

question 30

Multiple Choice

Use the percentage method of withholding to find the federal withholding tax, a 6.2% FICA rate to find the FICA tax, and
1.45% to find the Medicare tax. Then find the net pay for the employee. Assume that the employee has not earned over
$115,000 so far this year.
-Karen Smith has gross earnings of $7512.15 monthly. She is single and has 6 withholding allowances.

• A)$7,964.90
• B)$6,484.72
• C)$6,937.47
• D)$5,910.04

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Definitions:

Inefficiencies

The lack of effectiveness or productivity in performing tasks, often leading to wasted resources or time.

Long-Term Disability

Insurance coverage that provides income support to individuals who are unable to work for a lengthy period due to a disabling condition or illness.

Working Income

The earnings received from employment or self-employment, often considered in the context of personal finance and taxation.

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The administrative bodies governing the provinces of a country, responsible for local laws, policies, and governance within their specific geographical areas.