Question

Ron Swift earned $1,500 last week. He is married, paid bi-weekly, and claims two exemptions. Using the percentage method (use tables in the handbook) his income tax is: (Points : 2)

Answer 1

rara, can't help you with this one without the table mentioned. However, you would first calculate Ron's total annual income. If he is paid bi-weekly, it means he is paid every two weeks. So, every two weeks Ron brings in $1500. 52 weeks in a year means he gets 26 paychecks (every two weeks, right?). So, 26*1500 would be his annual salary. I believe you would look up in the table this value along with his two deductions and find the income tax.

Hope that helps.