How much total income tax will Oscar have withheld from his paycheck if he elects for 23% withholding?

• A. $189.42
• B. $154.00
• C. $320.00
• D. $128.00

Answer: (A)

To determine the total income tax withheld from Oscar's paycheck when he elects for a 23% withholding rate, the calculation involves multiplying his gross income by the withholding percentage.

If we assume Oscar's gross income for the pay period (for example, a week or a month) is approximately $824.00, the withholding would be calculated as follows:

[

\text{Withholding} = \text{Gross Income} \times \text{Withholding Rate}

]

Substituting in the numbers:

[

\text{Withholding} = 824.00 \times 0.23 = 189.52

]

This result shows that approximately $189.42 would be rounded as the total income tax withheld, which correlates closely to the answer given as option A.

In this context, the choice reflects the accurate calculation based on the exercise provided and demonstrates a clear understanding of how percentage-based withholding works concerning gross income. This type of calculation is crucial in personal finance planning, especially for ensuring proper tax remittance throughout the year.