Answer to Question #111577 in Accounting for Everlyn

Question

Mary Matthews made $950 during a biweekly pay period only social security (fully taxable) and federal income taxes attach to her pay. Matthews contributes $100 each biweekly pay to her company's 401k. Determine Matthews take home pay if she is married and claims 2 allowances.

(biweekly withholding allowance = $161.50)

Tax table link below

https://cxp.cengage.com/contentservice/assets/T=1587480948747/btpa20t/images/chapter04/Exhibit_4-1.html

Answer 1

950-18 = 932

932-0 = 932

932-100-161.50 = 670.5

670,5-0 = 670,5

670.5-454 = 216,5

$216,5\times0.1 = 21.65$

21.65 + 0 = 21.65

950-100-21.65 = 828.35