BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
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Alex Lopez gross pay is $61, 400. His state income tax rate is 3.3%. How much will he pay in state tax?
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$1, 995.80
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$1, 722.10
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$2, 026.20
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$2, 296.25
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Explanation:
Detailed explanation-1: -For instance, if you sell goods or services for Rs 1000, then the net price will be Rs 1000 + 18% of 1000 (GST) = 1000 + 180 = Rs 1180. How to compute taxable GST? To find out the GST that is incorporated in a company’s receipts from items that are taxable, you need to divide the receipts by 1+ the applicable tax rate.
Detailed explanation-2: -What Is the Marginal Tax Rate? The marginal tax rate is the amount of additional tax paid for every additional dollar earned as income. The average tax rate is the total tax paid divided by total income earned. A 10 percent marginal tax rate means that 10 cents of every next dollar earned would be taken as tax.
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