Question

A high school student working part-time as a shelf stocker had a gross income of $6675 last year. If his federal tax rate was 10% and his state tax rate was 3%, what was the amount withheld from his pay last year in federal tax, state tax, and FICA combined?

Answer 1

@Directrix !

Answer 2

Long time, no seeing you!

Answer 3

I know ! I've been busy sorry.

Answer 4

Why so many word problems? Are you taking an accounting course?

Answer 5

lol financial literacy

Answer 6

How much of this --> was withheld? @ChinaGurl >>>and FICA

Answer 7

$6675 !

Answer 8

@Directrix

Answer 9

You gave the two tax rates but did not give the FICA (social security?) rate. So, there's no way to answer the problem that I can see because I don't know what the going deduction rate for FICA is. Did you leave something out of the problem?

Answer 10

$6675 is not the same as FICA as best I remember.

Answer 11

@Directrix no sir. thats exactly how the question is stated!

Answer 12

If you deduct just .10(6675) + .03(6675) and don't include the FICA, I think the answer will be wrong because that is just state and federal tax.

Answer 13

@ChinaGurl That's only $867.75. There's still the FICA.

Answer 14

the correct answer was one thousand eight hundred something I think ...I don't recall , but thanks for always helping me!

Answer 15

Read about FICA:

Under the Federal Insurance Contributions Act (FICA) 12.4% of earned income up to an annual limit must be paid into Social Security, and an additional 2.9% must be paid into Medicare.

That limit is $110,100 for 2012.

There are no earned income limits on Medicare taxes -- so even if your salary is well above the cap for Social Security tax, you will still owe Medicare tax on your total earned income.

If you're a wage or salaried employee, you pay only half the FICA bill (In 2012, 4.2% for Social Security plus 1.45% for Medicare), and the tax is automatically withheld.

Your employer contributes the rest.
http://money.cnn.com/magazines/moneymag/money101/lesson18/index4.htm

Answer 16

.10(6675) + .03(6675) + .042(6675) + .0145(6675) =
OR
.10(6675) + .03(6675) + .124(6675) + .029(6675) =