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Mathematics 18 Online
OpenStudy (anonymous):

If you have 15% withheld for federal taxes, 10% for state taxes, and FICA is a 7.65%, how much are you involuntary withholdings in all if your gross pay is $1575.00 and your net income is $925.00

OpenStudy (anonymous):

Well, if involuntary withholdings are the only deduction, then the amount of them should be the difference between gross pay and net income. $1575 - $925 = $650 in withholdings BUT if you add up all the rates of withholding you get (%15+%10+%7.65) = %32.65 and $1575 X %32.65 = $514.24 the difference between $650 and $514.24 is the amount of taxes that the problem does not mention or account for. I would say that $650 is your answer.

OpenStudy (anonymous):

$650.00 isn't an option.

OpenStudy (ranga):

The percentages listed in the problem are the involuntary withholdings. Total 32.65%. $1575.00 x 32.65 / 100 = $514.24. involuntary withholdings = $514.24

OpenStudy (ranga):

FYI: $1575 - $925 = $650 is the total withholdings: voluntary and involuntary. The difference between $650 and $514.24 = $135.76 is the voluntary withholding. This is just FYI not needed for the answer.

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