calculate the net salary of a person earning $71,000 in british columbia using the following tax…

calculate the net salary of a person earning $71,000 in british columbia using the following tax brackets:\nfederal tax rates\ntax taxation bracket\n15% first $43,000\n22% $43,000 - 86,000\n26% $86,000 - 133,000\n29% above $133,000\nprovincial taxation brackets\n5.1% first $37,000\n7.7% $37,000 - 74,000\n10.5% $74,000 - 85,000\n12.3% $85,000 - 103,000\n14.7% above $103,000\nnet salary: $

calculate the net salary of a person earning $71,000 in british columbia using the following tax brackets:\nfederal tax rates\ntax taxation bracket\n15% first $43,000\n22% $43,000 - 86,000\n26% $86,000 - 133,000\n29% above $133,000\nprovincial taxation brackets\n5.1% first $37,000\n7.7% $37,000 - 74,000\n10.5% $74,000 - 85,000\n12.3% $85,000 - 103,000\n14.7% above $103,000\nnet salary: $

Answer

Explanation:

Step1: Calculate federal tax

For the first $43,000 of the $71,000 income, the federal - tax rate is 15%. The tax amount for this part is $43000\times0.15=$6450$. The remaining income is $71000 - 43000=$28000$. For this remaining amount, the federal - tax rate is 22%. The tax amount for this part is $28000\times0.22=$6160$. The total federal tax is $6450 + 6160=$12610$.

Step2: Calculate provincial tax

For the first $37,000 of the income, the provincial - tax rate is 5.1%. The tax amount for this part is $37000\times0.051=$1887$. The remaining income is $71000 - 37000=$34000$. For this remaining amount, the provincial - tax rate is 7.7%. The tax amount for this part is $34000\times0.077=$2618$. The total provincial tax is $1887+2618 = $4505$.

Step3: Calculate net salary

The total tax is the sum of federal and provincial taxes, which is $12610 + 4505=$17115$. The net salary is the gross income minus the total tax, so it is $71000-17115=$53885$.

Answer:

$53885$