Complete the FWT (wage-bracket method) and SWT columns of the payroll register using the employee data listed below. The associated pay period ends on 08/07/2020, with paychecks being printed and distributed six days later. Every employee earns hourly overtime wages 1.5 times greater than their regular wage rate. Enter all employees' names in the format Last Name, First Initial (for example: Rick Smith would be written as Smith, R). The state income tax withholding rate is 5.0% of taxable pay, with taxable pay being the same for federal and state income tax withholding. Note that the Voluntary Withholding column, for which partial information is provided below, has been populated based on the partial information shown here. 4. Jason Kindler earns $11/hour, and worked 45 hours during the most recent week. He makes a 403(b) retirement plan contribution of 13% of gross pay. Jason Kindler is married, and claims three withholding allowances for both federal and state.

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Chapter1: Financial Statements And Business Decisions
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## 2020 Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later

**Weekly Payroll Period**

### STANDARD Withholding Rate Schedules:
(Use these if the box in Step 2 of Form W-4 is NOT checked)

| If the Adjusted Wage Amount (line 1h) is: | The Tentative Amount to Withhold is:                      | Plus This Percentage of the Amount that the Adjusted Wage exceeds - |
|------------------------------------------|--------------------------------------|-------------------------------------|
| At least                                | But less than                        |                                    |

**Married Filing Jointly**

| A (At least)  | B (But less than) | C (Tentative amount to withhold is) | D (Plus this percentage) | E (of the amount that the adjusted wage exceeds -) |
|---------------|-------------------|------------------------------------|-------------------------|------------------------------------------|
| $0            | $477              | $0.00                              | 0%                      | $0        |
| $477          | $857              | $0.00                              | 10%                     | $477      |
| $857          | $2,020            | $38.00                             | 12%                     | $857      |
| $2,020        | $3,756            | $177.56                            | 22%                     | $2,020    |
| $3,756        | $6,758            | $561.68                            | 24%                     | $3,756    |
| $6,758        | $8,452            | $1,367.76                          | 32%                     | $6,758    |
| $8,452        | $12,439           | $1,821.84                          | 35%                     | $8,452    |
| $12,439       |                   | $3,217.29                          | 37%                     | $12,439   |

**Single or Married Filing Separately**

| A (At least)  | B (But less than) | C (Tentative amount to withhold is) | D (Plus this percentage) | E (of the amount that the adjusted wage exceeds -) |
|---------------|-------------------|------------------------------------|-------------------------|------------------------------------------|
| $0            | $238              | $0.00                              | 0%
Transcribed Image Text:## 2020 Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later **Weekly Payroll Period** ### STANDARD Withholding Rate Schedules: (Use these if the box in Step 2 of Form W-4 is NOT checked) | If the Adjusted Wage Amount (line 1h) is: | The Tentative Amount to Withhold is: | Plus This Percentage of the Amount that the Adjusted Wage exceeds - | |------------------------------------------|--------------------------------------|-------------------------------------| | At least | But less than | | **Married Filing Jointly** | A (At least) | B (But less than) | C (Tentative amount to withhold is) | D (Plus this percentage) | E (of the amount that the adjusted wage exceeds -) | |---------------|-------------------|------------------------------------|-------------------------|------------------------------------------| | $0 | $477 | $0.00 | 0% | $0 | | $477 | $857 | $0.00 | 10% | $477 | | $857 | $2,020 | $38.00 | 12% | $857 | | $2,020 | $3,756 | $177.56 | 22% | $2,020 | | $3,756 | $6,758 | $561.68 | 24% | $3,756 | | $6,758 | $8,452 | $1,367.76 | 32% | $6,758 | | $8,452 | $12,439 | $1,821.84 | 35% | $8,452 | | $12,439 | | $3,217.29 | 37% | $12,439 | **Single or Married Filing Separately** | A (At least) | B (But less than) | C (Tentative amount to withhold is) | D (Plus this percentage) | E (of the amount that the adjusted wage exceeds -) | |---------------|-------------------|------------------------------------|-------------------------|------------------------------------------| | $0 | $238 | $0.00 | 0%
### Payroll Register Completion Guidelines for Educational Purposes

Below you will find the instructions on how to complete the FWT (Federal Withholding Tax using the wage-bracket method) and SWT (State Withholding Tax) columns of the payroll register using specific employee data. The guidance provided is based on the payroll register for the pay period ending on 08/07/2020, with paychecks scheduled to be printed and distributed six days later.

Every employee earns an hourly wage, and any overtime is compensated at 1.5 times their regular wage rate. When entering employee names, format them as "Last Name, First Initial." For example, Rick Smith should be entered as "Smith, R."

### Tax Withholding Guidance:

- **State Income Tax (SWT):** The state income tax withholding rate is 5.0% of taxable pay. The taxable pay base for both federal and state income tax calculations is the same.
- **Voluntary Withholding:** Certain voluntary deductions are already accounted for and populated based on the partial information provided below.

#### Employee Example:

**Jason Kindler**
- **Hourly Wage:** $11/hour
- **Hours Worked:** 45 hours during the most recent week
- **Retirement Plan Contribution:** He contributes 13% of his gross pay to a 403(b) retirement plan
- **Marital Status:** Married
- **Withholding Allowances:** Claims three allowances for both federal and state withholding

In this scenario, the task is to correctly input the FWT and SWT values into the payroll register based on the guidelines and calculations described.

**Note:** Specific details for other employees and further instructions might be included but are currently obscured in the provided document image.

### Instructions for Completing the Payroll Register:

1. **Calculate Gross Pay:** Multiplied hourly wage by total hours worked, including overtime at 1.5x rate.
2. **Deduct Retirement Contribution:** Calculate 13% of gross pay to determine the amount contributed to the 403(b) plan.
3. **Determine Taxable Pay:** Subtract the retirement contribution from the gross pay.
4. **Apply Withholding Rates:**
   - Use the taxable pay to determine the amount for federal withholding tax (FWT) based on the wage-bracket method.
   - Use the 5.0% rate to determine the state withholding tax (SWT) based on the taxable pay.
5. **Input Data:** Enter the appropriate amounts
Transcribed Image Text:### Payroll Register Completion Guidelines for Educational Purposes Below you will find the instructions on how to complete the FWT (Federal Withholding Tax using the wage-bracket method) and SWT (State Withholding Tax) columns of the payroll register using specific employee data. The guidance provided is based on the payroll register for the pay period ending on 08/07/2020, with paychecks scheduled to be printed and distributed six days later. Every employee earns an hourly wage, and any overtime is compensated at 1.5 times their regular wage rate. When entering employee names, format them as "Last Name, First Initial." For example, Rick Smith should be entered as "Smith, R." ### Tax Withholding Guidance: - **State Income Tax (SWT):** The state income tax withholding rate is 5.0% of taxable pay. The taxable pay base for both federal and state income tax calculations is the same. - **Voluntary Withholding:** Certain voluntary deductions are already accounted for and populated based on the partial information provided below. #### Employee Example: **Jason Kindler** - **Hourly Wage:** $11/hour - **Hours Worked:** 45 hours during the most recent week - **Retirement Plan Contribution:** He contributes 13% of his gross pay to a 403(b) retirement plan - **Marital Status:** Married - **Withholding Allowances:** Claims three allowances for both federal and state withholding In this scenario, the task is to correctly input the FWT and SWT values into the payroll register based on the guidelines and calculations described. **Note:** Specific details for other employees and further instructions might be included but are currently obscured in the provided document image. ### Instructions for Completing the Payroll Register: 1. **Calculate Gross Pay:** Multiplied hourly wage by total hours worked, including overtime at 1.5x rate. 2. **Deduct Retirement Contribution:** Calculate 13% of gross pay to determine the amount contributed to the 403(b) plan. 3. **Determine Taxable Pay:** Subtract the retirement contribution from the gross pay. 4. **Apply Withholding Rates:** - Use the taxable pay to determine the amount for federal withholding tax (FWT) based on the wage-bracket method. - Use the 5.0% rate to determine the state withholding tax (SWT) based on the taxable pay. 5. **Input Data:** Enter the appropriate amounts
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