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%.

Explanation:

Step1: Calculate taxable income

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

Step2: Calculate tax on first $3000$

Tax on first $3000$ at 1.5% is $3000\times0.015 = 45$.

Step3: Calculate amount over $3000$

Amount over $3000$ is $16700 - 3000=13700$.

Step4: Calculate tax on amount over $3000$

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

Step5: Calculate total tax

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

Answer:

$456$