For each employee listed, use the wage-bracket method to calculate federal income tax withholding, assuming that each has submitted a pre-2020 Form W-4. Then calculate both the state income tax withholding (assuming a state tax rate of 5.0% of taxable pay, with taxable pay being the same for federal and state income tax withholding), and the local income tax withholding. Refer to the Federal Tax Tables in Appendix A of your textbook. NOTE: For simpl
For each employee listed, use the wage-bracket method to calculate federal income tax withholding, assuming that each has submitted a pre-2020 Form W-4. Then calculate both the state income tax withholding (assuming a state tax rate of 5.0% of taxable pay, with taxable pay being the same for federal and state income tax withholding), and the local income tax withholding. Refer to the Federal Tax Tables in Appendix A of your textbook.
NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
Jay Monroe (single; 2 federal withholding allowances) earned weekly gross pay of $1,110. For each period, he makes a 401(k) retirement plan contribution of 10% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 2.4% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents and 1.8% of an employee's taxable pay on nonresidents.
Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
