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Emma Thompson earns $2,202 semimonthly. She claims 4 allowances and is married. Employee: Thompson, Emma Semimonthly Earnings $2,202.00 Federal Income Tax Withholding:

Emma Thompson earns $2,202 semimonthly. She claims 4 allowances and is married. Employee: Thompson, Emma Semimonthly Earnings $2,202.00 Federal Income Tax Withholding:

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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### Practice, Practice, Practice We've said it before ... and we'll say it again, **Practice makes perfect**. Determine the federal withholding for each employee. Emma Thompson earns $2,202 semi-monthly. She claims 4 allowances and is married. #### Employee: Thompson, Emma - **Semi-monthly Earnings:** $2,202.00 - **Federal Income Tax Withholding:** $ ____ --- Spencer Tracy earns $2,789 monthly. He claims 2 allowances and is single. #### Employee: Tracy, Spencer - **Monthly Earnings:** $2,789.00 - **Federal Income Tax Withholding:** $ ____ --- Christian Bale earns $6,799.20 monthly. Additional information necessary to determine Christian's tax withholding can be found on his attached [W-4](#). **Note:** Enter ALL values as positive numbers. #### Calculation Table | Description | Calculation | |-------------|--------------| | **1.** Determine the amount of gross wages, rounded to the nearest dollar. | $______ | | **2.** Enter the value of the allowances based on the payroll period. | $______ | | **3.** Multiply the allowance value by the employee allowances claimed | x (______) | | **4.** Subtract allowances from gross pay, referred to as **excess wages** | $______ | | **5.** Identify the correct bracket. Wages starting at $______ but not over $______ (______%) | $______ | | **6.** Determine the value over the starting wage for this bracket | $______ | | **7.** Multiply the overage by the tax rate in the table (enter as a decimal). | $______ | | **8.** Add the bracket minimum tax. | $______ | | **9.** Add the two amounts together, total withholding for Christian Bale | $______ | --- This exercise is designed to help you practice calculating federal income tax withholdings for employees using their earnings and withholding allowances as inputs. Use the table provided to perform the calculations step-by-step.
Transcribed Image Text:### Practice, Practice, Practice We've said it before ... and we'll say it again, **Practice makes perfect**. Determine the federal withholding for each employee. Emma Thompson earns $2,202 semi-monthly. She claims 4 allowances and is married. #### Employee: Thompson, Emma - **Semi-monthly Earnings:** $2,202.00 - **Federal Income Tax Withholding:** $ ____ --- Spencer Tracy earns $2,789 monthly. He claims 2 allowances and is single. #### Employee: Tracy, Spencer - **Monthly Earnings:** $2,789.00 - **Federal Income Tax Withholding:** $ ____ --- Christian Bale earns $6,799.20 monthly. Additional information necessary to determine Christian's tax withholding can be found on his attached [W-4](#). **Note:** Enter ALL values as positive numbers. #### Calculation Table | Description | Calculation | |-------------|--------------| | **1.** Determine the amount of gross wages, rounded to the nearest dollar. | $______ | | **2.** Enter the value of the allowances based on the payroll period. | $______ | | **3.** Multiply the allowance value by the employee allowances claimed | x (______) | | **4.** Subtract allowances from gross pay, referred to as **excess wages** | $______ | | **5.** Identify the correct bracket. Wages starting at $______ but not over $______ (______%) | $______ | | **6.** Determine the value over the starting wage for this bracket | $______ | | **7.** Multiply the overage by the tax rate in the table (enter as a decimal). | $______ | | **8.** Add the bracket minimum tax. | $______ | | **9.** Add the two amounts together, total withholding for Christian Bale | $______ | --- This exercise is designed to help you practice calculating federal income tax withholdings for employees using their earnings and withholding allowances as inputs. Use the table provided to perform the calculations step-by-step.
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