You recently switched jobs and your new job is going to pay you $86,000 per year. You expect to earn a 596 bonus in addition to your salary. Your new company offers a 401k plan and you plan to contribute 10% to your 401k. You are preparing your spending plan for the year and need to answer the following questions in order to complete your plan. Use the tax tables below to help answer the questions. a. What is your gross income with your salary and bonus? What is your marginal tax rate with this pay? b. What is your taxable income if you make a 10% annual 401k contribution? What is your marginal tax rate with this taxable income? c. How much will be withheld for federal income taxes if you receive the pay, bonus, and make the 401k contribution? d. What is your effective (average) federal income tax rate? e. You will have 7.65% of gross pay including your bonus withheld for payroll taxes (social security and medicare). What is your take-home pay after making the 401k contribution, having federal income taxes withheld and payroll taxes withheld? If the amount of wages is: The amount of income tax to withhold is: Over But Not Over $0 $3,800 $0 $3,800 $13,675 $0 + 10% of excess over $3,800 $13,675 $43,925 $987.50 plus 12% of excess over $13,675 $43,925 $89,325 $4,617.50 plus 22% of excess over 543,925 $89,325 $167,100 $14,605.50 plus 24% of excess over $89,325 $167,100 $211,150 $33,271.50 plus 32% of excess over $167,100 $211,150 $522,200 $47,367.50 plus 35% of excess over $211,150 $522,200 $156,235 plus 37% of excess over $522,200 You recently switched jobs and your new job is going to pay you $86,000 per year. You expect to earn a 596 bonus in addition to your salary. Your new company offers a 401k plan and you plan to contribute 10% to your 401k. You are preparing your spending plan for the year and need to answer the following questions in order to complete your plan. Use the tax tables below to help answer the questions. a. What is your gross income with your salary and bonus? What is your marginal tax rate with this pay? b. What is your taxable income if you make a 10% annual 401k contribution? What is your marginal tax rate with this taxable income? c. How much will be withheld for federal income taxes if you receive the pay, bonus, and make the 401k contribution? d. What is your effective (average) federal income tax rate? e. You will have 7.65% of gross pay including your bonus withheld for payroll taxes (social security and medicare). What is your take-home pay after making the 401k contribution, having federal income taxes withheld and payroll taxes withheld? If the amount of wages is: The amount of income tax to withhold is: Over But Not Over $0 $3,800 $0 $3,800 $13,675 $0 + 10% of excess over $3,800 $13,675 $43,925 $987.50 plus 12% of excess over $13,675 $43,925 $89,325 $4,617.50 plus 22% of excess over 543,925 $89,325 $167,100 $14,605.50 plus 24% of excess over $89,325 $167,100 $211,150 $33,271.50 plus 32% of excess over $167,100 $211,150 $522,200 $47,367.50 plus 35% of excess over $211,150 $522,200 $156,235 plus 37% of excess over $522,200
