How do I figure out the Income tax? Wages:Cash paid out during 2017 for wages totaled $142,000. Records indicate that salaries for the last week of December 2017 amounted to $25,000 and will be paid at the end of the first week in January 2018 (a two-week period.)On March 15,2017, Harriet's paid their 2016 income taxes. Harriet's will pay their 2017 income taxes on March 15, 2018. Harriet's has a 40% income tax rate for both 2016 and 2017.