Praxis 5511 Practice Question
Georgia earns $1,200/week. 32% is federal tax, 6.5% state tax, $125 to vacation club, no other deductions. What is her take-home pay?
Correct Answer: A
Rationale: To determine Georgia's take-home pay, first calculate her total deductions. Federal tax is 32% of $1,200, which amounts to $384. State tax at 6.5% adds another $78. These two taxes total $462. Additionally, she pays $125 to the vacation club.
Now, add the taxes and club fees: $462 + $125 = $587. Subtract this from her weekly earnings: $1,200 - $587 = $613.
Option A (613) reflects the correct calculation.
Options B (745), C (801), and D (910) do not account for the full deductions, leading to inflated take-home pay figures.
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