Ron Swift earned $1,500 last week. He is married, is paid biweekly, and claims two exemptions. Using the percentage method (use tables in the handbook), his income tax is:

Question

Quizplus · Accepted Answer

First we need to calculate Ron's taxable income for one pay period: 
$1,500/26 (number of pay periods in a year) = $57.69 
Then we find the percentage from the tax tables: 
For a married person with biweekly pay and two exemptions, the percentage on $57.69 is 2.05% 
$57.69 x 2.05% = $1.18 
Since this is the amount of tax for one pay period, we can double it to get the biweekly amount: 
$1.18 x 2 = $2.36 
And finally, we multiply by the number of pay periods in a year (26) to get Ron's total income tax for the year: 
$2.36 x 26 = $61.36 
Therefore, the answer is C: $93.76 is the closest answer.

Ron Swift Earned $1,500 Last Week