Q:

Tim Worker estimates his taxable income will be $7,000. He is paid twice a month or 24 times a year. Because Tim has only one source of income, he uses the Tax Tables to estimate how much will be deducted from his pay for withholding.

Accepted Solution

A:
Answer:
He pays $29.17 each time
This means that he pays $58.34 per month since he pays twice a month

Explanation:
The Individual's taxpayers table is shown in the attached image.
We know that the taxable income is $7000.
Based on the table attached, the taxes would be 10% of this income

This means that:
taxes = 0.1 * 7000 = $700

Now, we know that he pays twice a month. This means that he pays 24 times a year.
Therefore:
amount paid each time =Β [tex] \frac{700}{24} = [/tex] $29.166 which is approximately $29.17

Based on the above:
He pays $29.17 each time
This means that he pays $58.34 per month since he pays twice a month

Hope this helps :)