ethods 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
ethods 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 |
| 2020 Wage Bracket Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later BIWEEKLY Payroll Period |
|||||||
| If the Adjusted Wage Amount (line 1h) is | Married Filing Jointly | Head of Household | Single or Married Filing Separately | ||||
| At least | But less than | Standard Withholding | Form W-4, Step 2, Checkbox Withholding | Standard Withholding | Form W-4, Step 2, Checkbox Withholding | Standard Withholding | Form W-4, Step 2, Checkbox Withholding |
| The Tentative Withholding Amount is: | |||||||
| $380 $390 $400 $410 $420 |
$390 $400 $410 $420 $430 |
$0 $0 $0 $0 $0 |
$0 $0 $0 $0 $0 |
$0 $0 $0 $0 $0 |
$3 $4 $5 $6 $7 |
$0 $0 $0 $0 $0 |
$15 $16 $17 $18 $19 |
| $430 $445 $460 $475 $490 |
$445 $460 $475 $490 $505 |
$0 $0 $0 $0 $0 |
$0 $0 $0 $1 $2 |
$0 $0 $0 $0 $0 |
$8 $9 $11 $12 $14 |
$0 $0 $0 $1 $2 |
$20 $22 $24 $25 $27 |
| $505 $520 $535 $550 $565 |
$520 $535 $550 $565 $580 |
$0 $0 $0 $0 $0 |
$4 $5 $7 $8 $10 |
$0 $0 $0 $0 $0 |
$15 $17 $18 $20 $21 |
$4 $5 $7 $8 $10 |
$29 $31 $33 $34 $36 |
| $580 $595 $610 $625 $640 |
$595 $610 $625 $640 $655 |
$0 $0 $0 $0 $0 |
$11 $13 $14 $16 $17 |
$0 $0 $0 $0 $0 |
$23 $24 $26 $27 $29 |
$11 $13 $14 $16 $17 |
$38 $40 $42 $43 $45 |
| $655 $670 $685 $700 $715 |
$670 $685 $700 $715 $730 |
$0 $0 $0 $0 $0 |
$19 $20 $22 $23 $25 |
$0 $0 $0 $0 $1 |
$31 $33 $35 $36 $38 |
$19 $20 $22 $23 $25 |
$47 $49 $51 $52 $54 |
| $730 $745 $760 $775 $790 |
$745 $760 $775 $790 $805 |
$0 $0 $0 $0 $0 |
$26 $28 $29 $31 $32 |
$2 $4 $5 $7 $8 |
$40 $42 $44 $45 $47 |
$26 $28 $29 $31 $32 |
$56 $58 $60 $61 $63 |
| $805 $820 $865 $850 $865 |
$820 $865 $850 $865 $880 |
$0 $0 $0 $0 $0 |
$34 $35 $37 $38 $40 |
$10 $11 $13 $14 $16 |
$49 $51 $53 $54 $56 |
$34 $35 $37 $38 $40 |
$65 $67 $69 $70 $72 |
| $880 $895 $910 $925 $940 |
$895 $910 $925 $940 $955 |
$0 $0 $0 $0 $0 |
$42 $43 $45 $47 $49 |
$17 $19 $20 $22 $23 |
$58 $60 $62 $63 $65 |
$42 $43 $45 $47 $49 |
$74 $76 $78 $79 $81 |
| $955 $970 $985 $1,000 $1,015 |
$970 $985 $1,000 $1,015 $1,035 |
$1 $2 $4 $5 $7 |
$51 $52 $54 $56 $58 |
$25 $26 $28 $29 $31 |
$67 $69 $71 $72 $75 |
$51 $52 $54 $56 $58 |
$83 $85 $87 $88 $92 |
| $1,035 $1,055 $1,075 $1,095 $1,115 |
$1,055 $1,075 $1,095 $1,115 $1,135 |
$9 $11 $13 $15 $17 |
$61 $63 $65 $68 $70 |
$33 $35 $37 $39 $41 |
$77 $79 $82 $84 $87 |
$61 $63 $65 $68 $70 |
$96 $101 $105 $110 $114 |
| $1,135 $1,155 $1,175 $1,195 $1,215 |
$1,155 $1,175 $1,195 $1,215 $1,235 |
$19 $21 $23 $25 $27 |
$73 $75 $77 $80 $82 |
$43 $45 $47 $49 $51 |
$89 $91 $94 $96 $99 |
$73 $75 $77 $80 $82 |
$118 $123 $127 $132 $136 |
| 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 Amount (line 1h) is: | The tentative amount to withhold is: | Plus this percentage– | of the amount that the Adjusted Wage exceeds– | 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– |
At least– | But less than– |
||||||
| A | B | C | D | E | A | B | C | D | E |
| Married Filing Jointly | Married Filing Jointly | ||||||||
| $0 | $954 | $0.00 | 0% | $0 | $0 | $477 | $0.00 | 0% | $0 |
| $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 | ||||||||
| $0 | $477 | $0.00 | 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 | $88.84 | 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 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education