Chapter 5 Q2

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American Military University *

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Accounting

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Jan 9, 2024

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12/22/23, 12:43 AM Assignment Print View 2. Award: 10 out of 10.00 points Using the percentage method for manual payroll with W-4s from 2020 or later in Appendix C calculate the federal withholding amounts for the following employees. No information was included in Step 4 of the W-4, and no box was checked in Step 2. (Round your intermediate calculations and final answers to 2 decimal places.) Amount Pay per Federal Employee Filing Status Dependents Frequency Pay Income Tax Period S. Calder MJ Three <17 Monthly $ 10,750 $ 696.20 v P. Singh HH One <17 Biweekly $ 3,375 $ 287.10 v B. Nelson MJ None Daily $ 510 $ 58.25 v References Worksheet Difficulty: 2 Medium Learning Objective: 05-02 Determine Federal Income Tax Withholding Amounts Using the percentage method for manual payroll with W-4s from 2020 or later in Appendix C calculate the federal withholding amounts for the following employees. No information was included in Step 4 of the W-4, and no box was checked in Step 2. (Round your intermediate calculations and final answers to 2 decimal places.) Pay Amount per Federal Employee Filing Status Dependents Frequency Pay Period Income Tax S. Calder MJ Three <17 | Monthly $ 10,750 $ 696.20+/-0.01 P. Singh HH One <17 Biweekly $ 3,375| $ 287.10+/-0.01 B. Nelson MJ None Daily $ 510 $ 58.25+/-0.01 Explanation: https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJIbnZpcmOubWVudCl6InByb2QiLCJpc3MiOidlenQiLCJwemludFVSTCI6Imh0dHBzOIwvXC9lenRvLm10ZWR1Y2F ... 2/3
12/22/23, 12:43 AM Assignment Print View 8. Caider Monthly P. Singh Biweekly B. Nelson Daily 1a. Enter the employee's taxable wages this period $10,750.00 $ 3,375.00 $510.04 1b. Enter the number of pay periods per year 12 26 260 1c. Enter the amount from Step 4(a) of the employee's Form W-4 - - 1d. Divide line 1c. by the number on line 1b. - - - 1e. Add lines 1a. and 1d. $ 10,750.00 $ 3,375.00 $510.00 1f. Enter the amount from employee's W-4 step 4b - - - 1g. Divide line 1f. by the number on line 1b. - - 1h. Subtract line 1g. From line 1e. If zero or less, enter -0-. This is the Adjusted Wage Amount $10,750.00 $ 3,375.00 $510.00 Figure the tentative withholding amount 2a. Find the row in the STANDARD Withholding Rate Schedules (if the box in Step 2 of Form W-4 is NOT checked) or the Form W- 4,Step 2 Checkbox, Withholding Rate Schedules (if it HAS been checked) of the Percentage Method tables in this section in which the amount on line 1h is at least the amount in column A but less than the amount in column B, then enter here the amount from column A of that row $ 8,846.00 $ 2,808.00 $ 408.30 2b. Enter the amount from column C of that row $777.32 $239.28 $ 35.88 2c. Enter the percentage from column D of that row 22% 22% 22% 2d. Subtract line 2a. from line 1h. $ 1,904.00 $ 567.00 $101.70 2e. Multiple the amount on line 2d. by the percentage on 2c. $418.88 $124.74 $22.37 2f. Add lines 2b. and 2e. This is the Tentative Withholding Amount $1,196.20 $ 364.02 $58.24 Account for tax credits 3a. Enter the amount from Step 3 of the employee's Form W-4 $ 6,000.00 $ 2,000.00 | 3b. Divide the amount on line 3a. by 1b. $ 500.00 $76.92 - 3c. Subtract line 3b. from line 2h. If zero or less, enter 0 $ 696.20 $ 287.10 $ 58.2% Figure the final amount to withhold 4a. Enter the additional amount to withhold from Step 4(c) of the employee's Form W-4 - - 4b. Add lines 3c. And 4a. This is the amount to withhold from the employees wages this pay period $696.20 $287.10 $ 58.25 https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJibnZpcmOubWVudCI6InByb2QiL CJpc3MiOidlenQiLCJIwemiudFVSTCISImMhOdHBzOIwvXC9lenRvLm10ZWR1Y2F... 3/3
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