You have a job at a real-estate agency in the small country of Dystopia, where you are paid 72,000 marks (the currency of Dystopia) a year. You are now faced with the decision of whether to work a second job at the local university teaching a real-estate investing class, where the pay is 45,000 marks a year. Social insurance tax and income tax rates are listed below.

Social insurance taxes: 7.65% on your first 110,100 marks of total income
Income taxes:

Taxable income (in marks) Tax rate
0–8,700 10%
8,700–35,350 15%
35,350–85,650 25%
85,650–178,650 28%

a.) Using the information above, what would be the total amount you pay in social insurance taxes on your second job? Give your answer to two decimals.
b.) What is your income tax bill for the second job? Give your answer to two decimals.
c.) What is your total tax bill for the new job? Give your answer to two decimals.

Respuesta :

Answer:

2,914.65

2nd question : 12,190.50

Explanation:

income to be taxed is equal to (110,100 - 72,000) = 38,100 conchs. The tax itself is 7.65% × 38,100 =  2,914.65

2nd explaination: 25% × (85,650 - 72,000) = 25% × 13,650 = 3,412.50 conchs

28% × (45,000 - 13,650) = 28% × 31,350 = 8,778

Total income tax = 3,412.50 + 8,778 = 12,190.50 .

"Income to be taxed is equal to = 2,914.65 and The Total income tax  is = 12,190.50. Find more information check below".

Calculation of Income Tax

Part-1: income to be taxed is equal to (110,100 - 72,000) = 38,100 conchs.

Therefore, The tax itself is 7.65% × 38,100 is =  2,914.65

Part-2: 25% × (85,650 - 72,000) = 25% × 13,650 = 3,412.50 conchs

Then, 28% × (45,000 - 13,650) = 28% × 31,350 = 8,778

Therefore, The Total income tax is = 3,412.50 + 8,778 = 12,190.50.

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