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Edward Dorsey is a part-time employee, and during the biweekly pay period he earned $395. In addition, he is being paid a bonus of $300 along with his regular pay. If Dorsey is single, how much would be deducted from his pay for FIT, based on the two methods outlined below? Hint: There are two ways to determine the deduction. Do NOT use the table for the percentage method. a. Wage-bracket table $fill in the blank 1 b. Percentage method $fill in the

Edward Dorsey is a part-time employee, and during the biweekly pay period he earned $395. In addition, he is being paid a bonus of $300 along with his regular pay. If Dorsey is single, how much would be deducted from his pay for FIT, based on the two methods outlined below? Hint: There are two ways to determine the deduction. Do NOT use the table for the percentage method. a. Wage-bracket table $fill in the blank 1 b. Percentage method $fill in the

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Edward Dorsey is a part-time employee, and during the biweekly pay period he earned $395. In addition, he is being paid a bonus of $300 along with his regular pay. If Dorsey is single, how much would be deducted from his pay for FIT, based on the two methods outlined below?

Hint: There are two ways to determine the deduction. Do NOT use the table for the percentage method.

a. Wage-bracket table $fill in the blank 1
b. Percentage method $fill in the blank 2
TABLE 2–BIWEEKLY Payroll Period 2020 Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later BIWEEKLY Payroll Period STANDARD Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 is NOT checked) Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage of the amount that Amount (line lh) is: the Adjusted Wage of the amount that the Adjusted Wage withhold is: percentage- exceeds- If the Adjusted Wage Amount (line lh) is: The The - tentative - tentative But less amount to Plus this But less amount to Plus this At least- than- withhold is: percentage- exceeds- At least- than- A B D E A В D Married Filing Jointly Married Filing Jointly so $954 $0.00 0% $47 $00 $954 $1,713 $0.00 10% $954 $477 $857 $0.00 10% $477 $1,713 $4,040 $75.90 12% $1,713 $857 $2,020 $38.00 12% $857 $4,040 $7,533 $355.14 22% $4,040 $2,020 $3,766 $177.56 22% $2,020 $7,533 $13,515 $1,123.60 24% $7,533 $3,766 $6,758 $561.68 24% $3,766 $13,515 $16,904 $2,559.28 32% $13,515 $6,758 $8,452 $1,279.76 32% $6,758 $16,904 $24,879 $3,643.76 35% $16,904 $8,452 $12,439 $1,821.84 35% $8,452 $24,879 $6,435.01 37% $24,879 $12,439 $3,217.29 37% $12,439 Single or Married Filing Seperately Single or Married Filing Seperately $477 $00 0% $0 $0 $238 $0.00 0% $0 $477 $857 $0.00 10% $477 $238 $428 $0.00 10% $238 $857 $2,020 $38.00 12% $857 $428 $1,010 $19.00 12% $428 $2,020 $3,766 $177.56 22% $2,020 $1,010 $1,883 $8.84 22% $1,010 $3,766 $6,758 $561.68 24% $3,766 $1,883 $3,379 $280.90 24% $1,883 $6,758 $8,452 $1,279.76 32% $6,758 $3,379 $4,226 $639.94 32% $3,379 $8,452 $20,415 $1,821.84 35% $8,452 $4,226 $10,208 $910.98 35% $4,226 $20,415 $6,008.89 37% $20,415 $10,208 $3,004.68 37% $10,208
Transcribed Image Text:TABLE 2–BIWEEKLY Payroll Period 2020 Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later BIWEEKLY Payroll Period STANDARD Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 is NOT checked) Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage of the amount that Amount (line lh) is: the Adjusted Wage of the amount that the Adjusted Wage withhold is: percentage- exceeds- If the Adjusted Wage Amount (line lh) is: The The - tentative - tentative But less amount to Plus this But less amount to Plus this At least- than- withhold is: percentage- exceeds- At least- than- A B D E A В D Married Filing Jointly Married Filing Jointly so $954 $0.00 0% $47 $00 $954 $1,713 $0.00 10% $954 $477 $857 $0.00 10% $477 $1,713 $4,040 $75.90 12% $1,713 $857 $2,020 $38.00 12% $857 $4,040 $7,533 $355.14 22% $4,040 $2,020 $3,766 $177.56 22% $2,020 $7,533 $13,515 $1,123.60 24% $7,533 $3,766 $6,758 $561.68 24% $3,766 $13,515 $16,904 $2,559.28 32% $13,515 $6,758 $8,452 $1,279.76 32% $6,758 $16,904 $24,879 $3,643.76 35% $16,904 $8,452 $12,439 $1,821.84 35% $8,452 $24,879 $6,435.01 37% $24,879 $12,439 $3,217.29 37% $12,439 Single or Married Filing Seperately Single or Married Filing Seperately $477 $00 0% $0 $0 $238 $0.00 0% $0 $477 $857 $0.00 10% $477 $238 $428 $0.00 10% $238 $857 $2,020 $38.00 12% $857 $428 $1,010 $19.00 12% $428 $2,020 $3,766 $177.56 22% $2,020 $1,010 $1,883 $8.84 22% $1,010 $3,766 $6,758 $561.68 24% $3,766 $1,883 $3,379 $280.90 24% $1,883 $6,758 $8,452 $1,279.76 32% $6,758 $3,379 $4,226 $639.94 32% $3,379 $8,452 $20,415 $1,821.84 35% $8,452 $4,226 $10,208 $910.98 35% $4,226 $20,415 $6,008.89 37% $20,415 $10,208 $3,004.68 37% $10,208
2020 Wage Bracket Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later Withholding BIWEEKLY Payroll Period If the Adjusted Wage Amount line lh) is Single or Married Filing Married Filing Jointly Head of Household Form W-4, Step Standerå Form W-4, Step 2, Checkbox Withholding Separately Form W-4, Step 2, Checkbox Withholding Standard Standard 2. Checkbox But less than Withholding Withholding At least Withholding The Tentative Withholding Amount i $380 $400 S410 $17 S400 $410 $420 $420 $430 $19 $430 S445 S460 S474 $475 S490 $490 $505 $2 $2 רנ> $505 $520 20 S520 $550 $535 $550 S565 $565 $580 $36 5580 S610 S625 S640 S655 S670 $31 S700 S685 S700 S715 S730 $730 S74 540 S760 S760 ךך> $44 $31 $790 S805 $32 S805 $34 $10 $11 $49 $34 $865 S37 37 $13 $53 S850 S865 $38 $54 $38 S865 S880 S40 $56 S880 $42 so10 $925 S940 $940 $955 $49 So70 $51 $985 $1.000 $54 $1.000 $1.015 s1.015 $1.035 $92 $1.055 sL.075 $1.09 $1 115 $1.035 s101 Si.075 s1 095 $1.115 S1 135 $13 $37 $105 $15 $68 $39 S110 $1.135 $114 $1 15 $43 $118 $123 $127 $1.155 $1,175 $1.175 $1,195 $1,215
Transcribed Image Text:2020 Wage Bracket Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later Withholding BIWEEKLY Payroll Period If the Adjusted Wage Amount line lh) is Single or Married Filing Married Filing Jointly Head of Household Form W-4, Step Standerå Form W-4, Step 2, Checkbox Withholding Separately Form W-4, Step 2, Checkbox Withholding Standard Standard 2. Checkbox But less than Withholding Withholding At least Withholding The Tentative Withholding Amount i $380 $400 S410 $17 S400 $410 $420 $420 $430 $19 $430 S445 S460 S474 $475 S490 $490 $505 $2 $2 רנ> $505 $520 20 S520 $550 $535 $550 S565 $565 $580 $36 5580 S610 S625 S640 S655 S670 $31 S700 S685 S700 S715 S730 $730 S74 540 S760 S760 ךך> $44 $31 $790 S805 $32 S805 $34 $10 $11 $49 $34 $865 S37 37 $13 $53 S850 S865 $38 $54 $38 S865 S880 S40 $56 S880 $42 so10 $925 S940 $940 $955 $49 So70 $51 $985 $1.000 $54 $1.000 $1.015 s1.015 $1.035 $92 $1.055 sL.075 $1.09 $1 115 $1.035 s101 Si.075 s1 095 $1.115 S1 135 $13 $37 $105 $15 $68 $39 S110 $1.135 $114 $1 15 $43 $118 $123 $127 $1.155 $1,175 $1.175 $1,195 $1,215
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