Take Home Pay

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dmanda24

Senior Member
Hi, the following is a question that I'm stuck on from the unlimited contractor mike holt exam preparation booklet

The take home pay of a singleemployee who earns $300.00 per week, and has four allowances, would be (use the wage bracket method) $______.
a)265-280
b)275-284
c)285-294
d)295-305

Answer from booklet: a) 265-280
1) Take home pay
2) Gross wages..........................................$300.00
3) Social Security Taxes (300.00 x 0.062).......-$18.60
4) Medicare Taxes (300.00 x 0.0145)................$4.35
5) Witholding taxes........................................$2.00
6) $300 - 27.95 = $272.05..........................------------
7) Net take home pay...................................$275.05

My questions are
if the final answer in line 7 is 275.05 then it corresponds to two answers
a)265-280
b)275-284
by looking at all the answers it could be that answer b) should read 281-284 so that all the answers should be
a)265-280
b)281-284
c)285-294
d)295-305
and then answer a) would make sense

But what in the world is line 6 all about??? is the answer between 272.05 and 275.05 and that's why the answer is a). where does that line 6 come from.
Any help would be appreciated it.
 
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infinity

Moderator
Staff member
Location
New Jersey
Occupation
Journeyman Electrician
dcspector said:
Wow.....tough place to post that info. Is this the place to post it? Forum? Moderators? Tax info IMO is not here. I will be shot down for this I am sure.


The question is from Mike's book, what's wrong with posting in the Exam prep forum?
 
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roger

Moderator
Staff member
Location
Fl
Occupation
Retired Electrician
dcspector said:
Me to and I feel stupid for that post.....

Well Greg, the problem I see with your post was, you said;

Tax info IMO is not here

when you should have said

Tax info IMSO is not here :wink: :grin:

Roger
 

Smart $

Esteemed Member
Location
Ohio
dmanda24 said:
...single employee who earns $300.00 per week, and has four allowances, would be (use the wage bracket method)...

5) Witholding taxes........................................$2.00
For the given parameters, 2008 witholding tax is $0.00.
 

Smart $

Esteemed Member
Location
Ohio
dmanda24 said:
Well The exam is based on 2004 tax
I assumed the exam prep booklet was based on an earlier tax year (year unknown). But are you saying the exam itself is based on 2004 tax year?

Best to be prepared for differences between the prep and actual exam bases.
 

dmanda24

Senior Member
Smart $ said:
I assumed the exam prep booklet was based on an earlier tax year (year unknown). But are you saying the exam itself is based on 2004 tax year?

Best to be prepared for differences between the prep and actual exam bases.

In the materials for the exam it lists the 2004 contractor's manual so I assume is based on the 2004 tax year
 

POWER_PIG

Senior Member
wha?

wha?

The only thing I can say is
Give that poor poor employee a raise!
$300 per week in 2004?
I don't think so.
 
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