Introduction to College Math
Unit 2 – Net Income
Learning Target 2.1 – Federal Income Tax
Find the following federal income tax that will be withheld, using the MARRIED Persons –
Weekly Payroll Period table for questions 1-7.
1. Weekly Income: $285.40; 1 allowance
2. Weekly Income: $333.83; 1 allowance
3. Weekly Income: $283.00; 2 allowances
4. Weekly Income: $348.00; 1 allowance
5. Weekly Income: $289.50; 0 allowances
6. Weekly Income: $334.20; 2 allowances
7. Weekly Income: $320.00; 0 allowances
Find the following federal income tax that will be withheld, using the SINGLE Persons – Weekly
Payroll period table for questions 8-15
8. Jeannie Cooley, single. Earns $330.15 weekly, claims 2 allowances.
9. Matt Osborn, single. Earns $170 weekly, claims 3 allowances.
10. Hubert Pacetta, single. Earns $232.40 weekly, claims 3 allowances.
11. Emily Zasada, single. Earns $300 weekly, claims 2 allowances.
12. Shirley Delaney earns $325 a week. She is single and claims 2 allowances.
13. Hank Michalat earns $321 a week. He is single and claims no allowances.
14. Harold Leu is single and earns $300 a week. He claims 1 allowance.
15. Tina Ford is single, earns $252 a week, and claims 1 allowance.
Find the following federal income tax that will be withheld, using the MARRIED Persons –
Weekly Payroll period table for questions 16-19.
16. Carol Meinka is married, earns $615 a week, and claims 3 allowances.
17. Luther Myers earns $435 a week. He is married and claims 2 allowances.
18. Georgette Young is paid a weekly wage of $491.60. She is married and claims 2
allowances. Beginning next year, she will claim another allowance for supporting her
mother. How much less will be withheld for federal income tax for the year?
19. Lamoin Kelb earns $272.44 a week. He is married and claimed 2 allowances last year he
hopes to receive a refund on his next tax return by claiming no allowances this year.
How much more in withholdings will be deducted weekly if he claims no allowances?
20. Some companies use a percentage method instead of the tax tables to compute the
income tax withheld. Use the information below to find the amount withheld for the
SINGLE employees listed. Each weekly allowance is $41.35.
WEEDLY PAYROLL PERIOD, SINGLE PERSON
If the amount of wages (after subtracting
withholding allowances) is:
The amount of income tax to be
withheld shall be:
Not over $24……………….0
Over –
But not over –
of excess over –
$24
$415
$972
– $415………..15%
– $972………..$58.65 plus $28%
…………………..$214.61 plus $31%
– $24
– $415
– $972
a. Find the allowance amount.
Number of allowances x $41.35
b. Find the taxable wages.
Weekly Wage – Allowance Amount
c. Find the amount withheld for the employees below.
Employee
D. Faust
J. Wray
E. Kohn
K. Bird
Weekly
Wage
$ 184.00
$ 490.00
$ 690.00
$ 1150.00
Number of
Allowances
1
3
2
4
Allowance
Amount
$ 41.35
$ 124.05
$________
$________
Taxable
Wages
$ 142.65
$ 365.95
$________
$________
Amount
Withheld
$ 17.80
$________
$________
$________
Introduction to College Math
Unit 2 – Net Income
Learning Target 2.2 – State Income Tax
Find the state income tax withheld from each paycheck according to the following Exemption
Rate: Single – $1500
Married – $3000
Each Dependent – $700
1. Gross pay: $18,900, single, and 1 dependent
2. Gross pay: $34,000, married, and 3 dependents
Annual
Gross Pay
3. ($17,000
4. ($24,000
5. ($9,500
Personal
Exemptions
–
$3000
–
$2,200
–
$1,500
–
=
=
=
=
Taxable
Wages
$14,000)
$______)
$______)
X
X
X
x
State
Tax Rate
2%
5%
3.5%
=
=
=
=
Tax
Withheld
$_______
$_______
$_______
6. Linda Raabe earns $15,900 annually, single, and 0 dependents.
7. Harold Gibbons earns $13,840 annually, married, and 0 dependents.
8. Roger Hoblet earns $79,500 annually, married, 3 dependents, and state tax rate of 4.6%.
Personal Exemptions –_______________Withheld for State Tax –___________________
9. Sarah Krouse earns $17,300 annually, single, 1 dependent, and state tax rate of 2.5%
Personal Exemptions –_______________Withheld for State Tax –___________________
10. Henry Altman earns $24,200 annually as a traffic analyst. HE is married and supports 2
children. The state tax rate in his state is 2% of taxable income. What amount is withheld
yearly for state income tax?
11. Kristi Maher earns $39,940 per year. Her personal exemptions include herself and her
husband. The state tax rate in her state is 4.5% of taxable income. What amount is
withheld yearly for state income tax?
12. Heidi Harse is a registered nurse. She earns $29,830 a year and is single. The state
income tax rate is 5% of taxable income. What amount is withheld yearly for state income
tax?
13. Joseph Ryczke earns $32,000 a year as a city planner. He is paid on a weekly basis. He
is married, has no dependents, and claims 2 withholding allowances for federal income tax
purposes. The state tax rate is 2% of taxable income. How much is withheld annualy from
Joseph’s gross pay for state and federal income taxes?
14. Wendy Chou earns $26,320 a year as a nurse’s aide. She is paid on a weekly basis. She
is single, has 1 dependent, and claims 2 withholding allowances. The state tax rate is 2.5%
of taxable income. How much is withheld each year from her gross pay for state and
federal income taxes?
Find the tax withheld per pay period for questions 15 – 16.
15. Annual salary $19,400, personal exemptions of $1,500, and paid semimonthly.
16. Annual salary $21.350, personal exemptions of $3,000, and paid biweekly.
17. Anna Vail receives an annual gross pay of $6,200 and has personal exemptions of
$3,000. Her state tax rate is 1.5% on the first $2,000 and 3% on any amount over $2,000.
What is her taxable income?
18. Clyde Browning receives an annual gross pay of $7,500 and has personal exemptions of
$2,000. His state tax rate is 1.5% on the first $2,000 and 3% on any amount over $2,000.
What is his taxable income?
19. Melissa Brossia receives an annual gross pay of $22,000 with personal exemptions of
$4,400. Her state tax rate is 1% on the first $2,000, 3% on the next $3,000, and 4.5% on any
amount over $5,000. How much state tax is withheld?
20. Curtis Spiess receives an annual gross pay of $12,350 and has personal exemptions of
$1,000. His state tax rate is 1% on the first $2,000, 3% on the next $3,000, and 4.5% on any
amount over $5,000. How much state tax is withheld?
Use the information below to answers questions 21 – 24.
PERSONAL EXEMPTIONS
STATE TAX
Single
$1,500
Annual Gross Pay
Married
$3,000
First $3,500
Each dependent
$700
Next $3,500
Over $7,000
Tax Rate
3%
4.5%
7%
21. Milton Chandler’s annual gross pay is $14,400. He is single and is paid on a monthly
basis. How much is withheld monthly for state tax?
22. Nancy Palino’s annual gross pay is $34,460. She is married with no dependents. How
much is withheld from her biweekly paycheck for state income tax?
23. August Daily earns $24,600 a year as a parks manager. He is married and has 2
children. How much is withheld from his weekly paycheck for state income tax?
24. Suzanne Pollitz earns $18,235 a year as a legal secretary. She is single and is paid on a
weekly basis. How much is withheld each week for state income tax?
Introduction to College Math
Unit 2 – Net Income
Learning Target 2.3 – Social Security and Medicare Taxes
1. Monthly salary $2,400
Earnings to date: $26,400
Social Security Withheld:_____________ Medicare Withheld:_____________
2. Weekly salary $350
Earnings to date: $16,800
Social Security Withheld:_____________ Medicare Withheld:_____________
3.
4.
5.
6.
7.
Gross Pay
SS Tax Rate
$
67.00
$ 345.00
$ 139.50
$ 1,500.00
$ 4,820.00
6.2%
6.2%
6.2%
_____%
_____%
Medicare Tax
Rate
1.45%
1.45%
_____%
_____%
_____%
SS Tax
Withheld
$ ______
$ ______
$ ______
$ ______
$ ______
Medicare Tax
Withheld
$ ______
$ ______
$ ______
$ ______
$ ______
Use the social security rate of 6.2% of the first $62,700 and medicare tax rate of 1.445% on all
income in solving the questions 8 – 15.
8. Matt Chester, firefighter, has earned $23,560 this year to date and receives a weekly gross
pay of $980. How much is deducted this week for social security and medicare?
9. Alicia Tsongas, pilot, received $9,750 gross pay this check and has earned $63,000 this year
to date. How much will be deducted this week for social security and medicare?
10. Cassius Mortier is paid monthly. His gross pay this month is $2,174. His earnings to date
for this year are $15,218. How much is deducted from his paycheck this month for social
security and medicare?
11. Ann Brewer earns $32,400 a year, paid on a semimonthly basis. How much is deducted per
pay period for social security and medicare tax?
12. Beth Deiger was hired for the position of receptionist and is paid $16,900 annually. How
much will be deducted from each of her biweekly paychecks for social security and medicare?
13. Halle Pool is a designer for Madison Toys. She is married, earns $472 weekly, and claims no
allowances. Her gross pay to date this year is $9,912. How much is deducted from her
paycheck this week for federal income, social security, and medicare taxes?
14. Jasin Pawloski is married and claims 2 allowances. How much is withheld from his weekly
paycheck of $550 for the last week of December for federal income, social security, and
medicare taxes?
15. Nick Peralta was hired on January 2 for the supervisory position of mechanical engineers,
with a salary of $66,000 a year. He’s paid monthly. How much is withheld in December for
social security and medicare?
Introduction to College Math
Unit 2 – Net Income
Learning Target 2.4 – Group Insurance
Find the deduction for group insurance per period.
1. Annual cost of insurance is $2,400, employer pays 80%, and paid monthly.
2. Annual cost of insurance is $3,272, employer pays 70%, and paid weekly.
3. Annual group insurance costs $3,800, company pays 40%, and paid semimonthly.
4. Annual group insurance costs $3,400, employer pays 75%, and paid yearly.
5. Janet Ingel’s group medical insurance coverage costs $3,580 a year. The company pays
85% of the cost. How much is deducted each month from her paycheck for medical
insurance?
6. Bev Katz, a clerk at La Mirage Motel, earns $245.22 weekly. Her group medical
insurance costs $2,350 a year, of which the company pays 60% of the costs. How much
is deducted weekly from her paycheck for medical insurance?
7. Veronica McMame $312.48 a week as a security guard for the city. Because she is an
employee of the city, the city pays 90% of the cost of any insurance coverage. Her
family medical insurance costs $3,228 a year. How much is deducted each week for
medical insurance?
8. Joel LaVita is a painter for the city. He earns an annual salary of $26,000. His annual
medical insurance costs $4,312 a year. The city pays 90% of the costs. How much is
deducted each week from his paycheck for medical insurance?
9. Lee Munger is employed at McDermott International as a TV technician. Her annual
salary is $28,600 and she is paid on a semimonthly basis. Her annual group medical
coverage costs $3,360, of which the company pays 75%. How much is deducted each
pay period from Lee’s paycheck for medical coverage?
10. Phil Akers is a surveyor for Globe Land Co. He is covered by travel insurance in addition
to basic medical coverage. Medical insurance costs $3,844 a year and travel insurance
costs another $347 a year. The company pays 80% of all insurance costs. How much is
deducted monthly for travel insurance? How much is deducted monthly for basic
medical coverage?
11. Helen Poling has medical, dental, and term life insurance coverages through the
company for which she works. Medical coverage costs $2,444 a year, dental coverage
costs $298 a year, and term life insurance costs $96.72 a year. The company pays 75%
of the medical and 50% of the dental coverage. Term life insurance is entirely paid for
by the company. What is the total amount deducted weekly for these coverages?
Introduction to College Math
Unit 2 – Net Income
Learning Target 2.5 – Total Net Income
1. Ron Rice is single and claims 1 allowance. His gross weekly salary is $320. Each week
he pays federal, social security, and medicare taxes, $16.20 for medical insurance, and
$25 for the credit union. What is net pay?
Find the deductions and the net pay. Social security is 6.2% of the first $62,700. Medicare is
1.45% of all income. Use the tax tables in the packet for federal tax. For problems 2-4, the state
tax is 2% of gross pay and the local tax is 1.5% of gross pay.
2. Terry Medley is single, claims 1 allowance, pays $12.75 for medical insurance, and
weekly gross pay of $250.50.
FIT –
_________________
State Tax –
_________________
SS –
_________________
Local Tax –
_________________
Medicare –
_________________
Other Deductions –
_________________
NET PAY –
_________________
3. Brad Herzig is married, claims 3 allowances, pays $16.60 for medical insurance, has $2
deducted each paycheck for savings in a credit union, pays $10 for union dues, and is
paid $304.20 weekly gross pay.
FIT –
_________________
State Tax –
_________________
SS –
_________________
Local Tax –
_________________
Medicare –
_________________
Other Deductions –
_________________
NET PAY –
_________________
4. Sue Shore is married, claims 1 allowance, pays $17.25 for medical insurance, pays $12
for union dues, and has a weekly gross pay of $455.00.
FIT –
_________________
State Tax –
_________________
SS –
_________________
Local Tax –
_________________
Medicare –
_________________
Other Deductions –
_________________
NET PAY –
_________________
5. Veronica Bell, an interior decorator for Crown Interior Design, is married and claims 1
allowance. Her state personal exemption is $35.46 a week. The state tax rate is 2.5% of
taxable wages. Local tax is 1.75% of gross pay. Her medical deduction is $22 a week.
Her weekly gross pay is $421.25.
FIT –
_________________
State Tax –
_________________
SS –
_________________
Local Tax –
_________________
Medicare –
_________________
Other Deductions –
_________________
NET PAY –
_________________
6. Glen Graybar is a painter and earns $24,700 a year. He is single and claims 3
allowances. Weekly deductions include FIT, social security, medicare, state tax of 3.0%
and local tax of 1.75% on gross earnings, $14.50 for medical insurance, and union dues
of $12 a week.
FIT –
_________________
State Tax –
_________________
SS –
_________________
Local Tax –
_________________
Medicare –
_________________
Other Deductions –
_________________
NET PAY –
_________________
7. Donna Ovsky is employed by Hiram Associates and works in the marketing department.
She is single and claims 2 allowances. Weekly deductions include FIT, social security,
medicare, state tax of 2.5% on gross earnings, local tax of 1.75% on gross earnings, and
medical insurance. The company pays 70% of the $3448 annual medical cost. She earns
a gross pay of $460.50 a week.
FIT –
_________________
State Tax –
_________________
SS –
_________________
Local Tax –
_________________
Medicare –
_________________
Other Deductions –
_________________
NET PAY –
_________________
8. Todd Damask is employed as a payroll supervisor and earns $9.60 per hour for a 40-hour
work week. He is married and claims 6 allowances. The state tax is 3.5% of gross
earnings and the local tax is 0.5% of gross earnings. He pays $27.40 for medical
insurance and $15 union dues. During the week ending 4/12, he worked 40 hours; how
much will his pay check be?
FIT –
_________________
State Tax –
_________________
SS –
_________________
Local Tax –
_________________
Medicare –
_________________
Other Deductions –
_________________
NET PAY –
_________________
9. John Clark, a purchasing agent at the Barnett Co., earns $8.00 an hour with time and a
half for working over 40 hours a week. He is married and claims 4 allowances. The state
tax rate is 25% of the federal tax. The local tax is 2.5% of gross earnings. Medical
insurance costs $2,432 a year, of which the company pays 80% of the cost. Credit union
deductions are $35 a week. What is his net pay for a week in which he worked 48
hours?
FIT –
_________________
State Tax –
_________________
SS –
_________________
Local Tax –
_________________
Medicare –
_________________
Other Deductions –
_________________
NET PAY –
_________________