Mathematics with Business Applications

Chapter 2:

Practice Test


1.	Melika Yasin's gross pay for this week is $355.00. She is married and claims no allowances. According to the table below, what amount will be withheld from Ms. Yasin's pay for FIT?
		A)	$35
		B)	$37
		C)	$42
		D)	$43


2.	Donna Forrester's gross pay is $72,500 a year. The state income tax rate is three percent of taxable wages. Donna takes a married exemption of $3,000 for herself and her husband. How much is withheld from her gross earnings for state income tax for the year?
		A)	$2,085
		B)	$2,175
		C)	$70,325
		D)	$70,415


3.	Warren Anderson's annual salary is $54,500. His personal exemptions total $1,500. The annual tax withheld is: 1.5 percent of the 1st $1,000, 3.0 percent of the next $2,000, 4.5 percent of the next $2,000, and 5.0 percent over $5,000. How much is deducted annually for state income tax?
		A)	$2,400
		B)	$2,565
		C)	$2,725
		D)	$2,890


4.	Charles Stickley's gross weekly pay is $915. His earnings to date for this year total $21,045. What amount is deducted weekly for Social Security taxes?
		A)	$13.27
		B)	$56.73
		C)	$70.00
		D)	$1,304.79


5.	Carrie Ambrose has family medical coverage through her employer's group medical plan. The annual cost of Ambrose's coverage is $4,800. If her employer pays 60 percent of the coverage, how much does Carrie have to pay?
		A)	$1,920.00
		B)	$2,880.00
		C)	$6,720.00
		D)	$7,680.00


6.	Lonnie Flanagan's weekly gross pay is $1,250. Each week she has $64.37 in deductions, plus state tax of two percent of her gross pay, and Social Security and Medicare taxes of 7.65 percent of her income. What is her net pay?
		A)	$185.00
		B)	$1,058.79
		C)	$1,065.00
		D)	$1,435.00


7.	Marlena Rodriguez's annual salary is $67,500. Her personal exemptions total $1,500. The annual tax withheld is: 1.5 percent of the 1st $1,000, 3.0 percent of the next $2,000, 4.5 percent of the next $2,000, and 5.0 percent over $5,000. How much is deducted annually from her salary for state income tax?
		A)	$61.83
		B)	$123.66
		C)	$267.92
		D)	$3,215.00


8.	Betty Wu has family medical coverage through her employer's group medical plan. The annual cost of her coverage is $5,500. If her employer pays 65 percent of the coverage, how much does Wu have to pay?
		A)	$37.02
		B)	$68.75
		C)	$1,925.00
		D)	$3,575.00


9.	Margaret Vanyo's gross pay is $37,000 a year. The state income tax rate is three percent of taxable wages. Vanyo takes a single exemption of $1,500. How much is withheld from her gross earnings for state income tax for the year?
		A)	$1,020.00
		B)	$1,065.00
		C)	$1,110.00
		D)	$1,155.00


10.	Tomas Gomez's gross weekly pay is $675. His earnings to date for this year total $15,525. What amount is deducted weekly for Social Security taxes?
		A)	$41.85
		B)	$37.02
		C)	$80.21
		D)	$962.55