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
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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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