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Do the Math $1-7$

Employee Benefits Decision

Ramon Alvarez, of Nome, Alaska, signed up for his employer$$s flexible spending account plan primarily because he can use the money to pay for unreimbursed medical expenses for himself and his disabled son. Ramon is in the $15$ percent marginal tax bracket, pays Social Security payroll taxes of $7\mathrm{.}65$ percent, and pays a $9$ percent state income tax rate.

How much will he save in income taxes by participating in the program this year in the amount of $$2,800?$ Round your answer to the nearest dollar.

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How much would Ramon save if he was in the $33$ percent federal marginal tax bracket? Round your answer to the nearest dollar.

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