Manny is paid \( \$ 835 \) on a weekly basis. He is married and is entitled to 2 withholding allowance. How much income, social security, and Medicare taxes will be withheld, based on the combined wage bracket tables in Exhibits \( 9-3 \) and \( 9-4 \) ? Select one: a. \( \$ 150.88 \) b. \( \$ 141.88 \) c. \( \$ 117.88 \) d. \( \$ 130.99 \)
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To determine the amount of income, social security, and Medicare taxes withheld from Manny's weekly pay of $835, we first need to focus on the withholding allowances and then consult the wage bracket tables (which are not provided here, but generally follow IRS guidelines). Assuming the relevant brackets indicate a specific rate based on his income after allowances, we apply the formula for withholding: Income tax is calculated by subtracting the allowance amount from the gross pay and applying the appropriate tax rate. For the Social Security tax, this is typically calculated at a rate of 6.2% up to a certain wage ceiling, while the Medicare tax is generally 1.45% of all wages. Calculating these taxes might yield different results based on specific tax rates, but based on the choices you've given, option (b) \( \$141.88 \) seems to fall within a typical range for someone in his situation with two allowances. For utmost accuracy, however, consulting the recent IRS tables is advised since tax brackets can shift slightly due to annual adjustments.