Ashley is single and has no children. She earns an annual salary of $32,000 and has no other income. Her employer deducts 5% from her salary as her contribution to her employer-sponsored retirement plan. Her health-insurance premiums are paid by her employer.

Use the 2018 Tax Brackets attachment to help answer the following questions.

1. Calculate Ashley's Medicare tax, based on her annual salary

2. Calculate Ashley's Social Security tax, based on her annual salary.

3. Calculate the amount Ashley contributes to her retirement fund each year and subtract this from her annual income to determine her "Box 1 Wages" on her W-2.

4. Subtract Ashley's standard deduction from her "Box 1 Wages" to determine her federal taxable income.

5. Use the 2018 Tax Brackets to find which tax bracket Ashely falls within and calculate her federal income tax.

6. Ashley takes two courses at Durham Tech, paying a total of $548 in tuition and fees for the year. She gets to take a Lifetime Learning Credit equal to 20% of this amount.

a) Subtract her Lifetime Learning Credit from her federal income tax to determine the amount she owes. $

b) What percent of her annual salary does she pay in federal income tax? Round your answer to the nearest percent.