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bogdanovich [222]
2 years ago
7

Tim worker estimates his taxable income will be $7000. He is paid twice a month or 24 times a year. Because Tim has only one sou

rce of income, he uses the tax tables to estimate how much will be deducted from his pay for withholding
Mathematics
2 answers:
Crazy boy [7]2 years ago
7 0

Answer:

Tim pays $29.16 each time and per month he pays $58.32.

Step-By-Step Explanation:

Tim's taxable income is $7000.

According to default tax table, people who earn under $10,000 has to pay 10% in taxes.

This means that:

Tim's taxes will be = 0.1 * 7000 = $700

Now, as given, he pays twice a month. This means that he pays 24 times a year.

Therefore this is \frac{700}{24}= 29.16

Hence, Tim pays $29.16 each time or 29.16*2= $58.32 per month.

torisob [31]2 years ago
4 0
Ol' Tim will not be subject to income tax at that level. But he will pay social security, the rate is 7.65%. 
<span>Time may be eligible for other credits such as the earned income, making work pay, credit credit, etc. </span>
<span>We need a lot more info, but Tim should be withheld at this level.</span>
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