Question

find the tax withheld for problems 3 & 4.

1. tobi vail, an aesthetician, has an annual gross pay of $18,200. her exemptions total $1,500. the state tax on the first $3,000 is 1.5% and on amounts over $3,000 is 3%.
2. carl brownstein is a golf course groundskeeper whose annual gross pay is $45,500. he has exemptions of $3,000. the state tax on the first $2,500 is 1.5% and 3% on amounts over $2,500.

Explanation:

Step1: Calculate taxable income for Tobi Vail

Taxable income = Gross pay - Exemptions. So, $18200 - 1500=16700$.

Step2: Calculate tax on first $3000$

Tax on first $3000$ at $1.5\%$ is $3000\times 0.015 = 45$.

Step3: Calculate tax on amount over $3000$

Amount over $3000$ is $16700 - 3000 = 13700$. Tax on this amount at $3\%$ is $13700\times0.03=411$.

Step4: Calculate total tax for Tobi Vail

Total tax = Tax on first $3000$+ Tax on amount over $3000$, so $45 + 411=456$.

Step5: Calculate taxable income for Carl Brownstein

Taxable income = $45500 - 3000 = 42500$.

Step6: Calculate tax on first $2500$

Tax on first $2500$ at $1.5\%$ is $2500\times0.015 = 37.5$.

Step7: Calculate tax on amount over $2500$

Amount over $2500$ is $42500 - 2500=40000$. Tax on this amount at $3\%$ is $40000\times0.03 = 1200$.

Step8: Calculate total tax for Carl Brownstein

Total tax = Tax on first $2500$+ Tax on amount over $2500$, so $37.5+1200 = 1237.5$.

Answer:

Tobi Vail's tax withheld is $\$456$.
Carl Brownstein's tax withheld is $\$1237.5$.