A married employee who earns $17/hour, works 38 hours during a recent week, is paid weekly, and claims 6 federal withholding allowances has $_____ in federal income tax withholding under the wage-bracket method
A married employee who earns $17/hour, works 38 hours during a recent week, is paid weekly, and claims 6 federal withholding allowances has $_____ in federal income tax withholding under the wage-bracket method.
Wage-bracket method :
This method is used to determine that how much money employers should withhold from employee wages for federal income tax (FIT). Under this method, first the wage range or category is determined for an employee, according to his W-4 forms and other details.
Then using the information from W-4 forms like filling status and pay frequency. the amount to be withhold by employer is computed through referring income tax withholding table under this method.
As per IRS, the wage bracket method tables cover only up to approximately $100,000 in annual wages.
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