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

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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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

 

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