stacy thinks her employer may not be withholding the correct amount from her paychecks for state income tax…

stacy thinks her employer may not be withholding the correct amount from her paychecks for state income tax. she made arrangements to have 19% of federal income tax withheld for state income tax. on her last paycheck, the federal withholding was $163.88 and her state income tax withholding was $24.58. which of the following statements is true?\na. stacy’s employer is withholding the correct amount for state income tax.\nb. stacy’s employer is withholding too little for state income tax.\nc. stacy’s employer is withholding too much for state income tax.\nd. stacy’s employer should not be withholding state income tax.\nplease select the best answer from the choices provided

stacy thinks her employer may not be withholding the correct amount from her paychecks for state income tax. she made arrangements to have 19% of federal income tax withheld for state income tax. on her last paycheck, the federal withholding was $163.88 and her state income tax withholding was $24.58. which of the following statements is true?\na. stacy’s employer is withholding the correct amount for state income tax.\nb. stacy’s employer is withholding too little for state income tax.\nc. stacy’s employer is withholding too much for state income tax.\nd. stacy’s employer should not be withholding state income tax.\nplease select the best answer from the choices provided

Answer

Explanation:

Step1: Find Federal Tax Base

First, we need to find the base amount for federal tax. The federal withholding is 19% of federal income tax withheld? Wait, no, actually, the federal withholding amount is $163.88, and she arranged 19% for federal income tax withholding. Wait, maybe we need to find the gross income? Wait, no, maybe the state tax is a percentage of the federal taxable income or the gross income. Wait, actually, to find the correct state withholding, we can assume that the state tax rate is a percentage, and we can find the expected state tax based on the federal withholding. Wait, maybe the federal withholding is $163.88, and the state withholding is $24.58. Wait, no, maybe we need to find what 19% of the federal withholding would be for state? Wait, no, let's re - read the problem.

Stacy made arrangements to have 19% of federal income tax withheld for state income tax. On her last paycheck, the federal withholding was $163.88 and her state income tax withholding was $24.58. We need to check if the state withholding is correct (19% of federal withholding) or too little or too much.

Step2: Calculate Expected State Withholding

Calculate 19% of the federal withholding amount. The formula for percentage calculation is: $Expected\ State\ Withholding = 0.19\times Federal\ Withholding$

Substitute the federal withholding amount ($163.88) into the formula:

$Expected\ State\ Withholding=0.19\times163.88$

$0.19\times163.88 = 163.88\times\frac{19}{100}=163.88\times0.19 = 31.1372\approx31.14$

Step3: Compare Expected and Actual State Withholding

The actual state withholding is $24.58, and the expected state withholding (19% of federal withholding) is approximately $31.14. Since $24.58 < 31.14, the employer is withholding too little for state income tax.

Answer:

b. Stacy's employer is withholding too little for state income tax.