To determine how federal taxes affect the net pay of a single person earning a gross biweekly salary of [tex]$840 and claiming 5 exemptions, we follow these steps:
1. Identify the Range for the Gross Salary:
- The individual earns $[/tex]840 biweekly. According to the provided table, we need to look at the row where the salary is "at least 820 but less than 840".
2. Identify the Column for Exemptions:
- The number of exemptions claimed by the person is 5.
3. Determine the Tax Withheld:
- Cross-referencing the row "820 - 840" with the column "5 exemptions" gives us the amount of income tax withheld. From the table, the tax withheld in this case is [tex]$26.
4. Calculate the Net Pay:
- Net pay is calculated by subtracting the tax withheld from the gross salary.
- Gross Salary = $[/tex]840
- Tax Withheld = [tex]$26
- Net Pay = Gross Salary - Tax Withheld
- \[ \text{Net Pay} = 840 - 26 = 814 \]
Therefore, the net pay, after federal taxes are withheld, is $[/tex]814. Federal taxes result in a deduction of $26 from the gross biweekly salary.
