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Henry, who earned $124,200 during 2020, is paid on a monthly basis, is married, (spouse does not work) and two dependents who are under the age of 17. Assume that Henry has only one job or that step 2 of Form W-4 is not checked. Also, his employer uses the percentage method table for an automated payroll system. Use percentage method tables for automated systems.   Required: What is Henry’s federal tax withholding for each pay period? What is Henry’s FICA withholding for each pay period?

Henry, who earned $124,200 during 2020, is paid on a monthly basis, is married, (spouse does not work) and two dependents who are under the age of 17. Assume that Henry has only one job or that step 2 of Form W-4 is not checked. Also, his employer uses the percentage method table for an automated payroll system. Use percentage method tables for automated systems.   Required: What is Henry’s federal tax withholding for each pay period? What is Henry’s FICA withholding for each pay period?

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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Henry, who earned $124,200 during 2020, is paid on a monthly basis, is married, (spouse does not work) and two dependents who are under the age of 17. Assume that Henry has only one job or that step 2 of Form W-4 is not checked. Also, his employer uses the percentage method table for an automated payroll system. Use percentage method tables for automated systems.

 

Required:

  1. What is Henry’s federal tax withholding for each pay period?
  2. What is Henry’s FICA withholding for each pay period?
2020 Percentage Method Tables for Automated Payroll Systems STANDARD Withholding Rate Schedules Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the Form W-4 is from 2020 or later and the box in Step 2 of Form W-4 IS checked) (Use these if the Form W-4 is from 2019 or earlier, or if the Form W-4 is from 2020 or later and the box in Step 2 of Form W-4 is NOT checked) of the amount that the of the amount that the If the Adjusted Annual Wage Amount (line 2a) is: If the Adjusted Annual Wage Amount (line 2a) is: The tentative Adjusted Annual The Adjusted Annual Plus this tentative Plus this But less But less Wage exceeds- Wage exceeds- amount to percentage amount to percentage At least- than- withhold is: At least- than- withhold is: А В C E А В E $ 0 $ 11,900 $ 31,650 $ 92,150 $ 182,950 $ 338,500 $ 426,600 $ 633,950 Married Filling Jointly $ 0.00 $ 0.00 $ 1,975.00 $ 9,235.00 $ 29,211.00 $ 66,543.00 $ 94,735.00 $ 167,307.50 Single or Married Filling Separately $ 0.00 $ 0.00 $ 987.50 $ 11,900 $ 31,650 $ 92,150 $ 182,950 $ 338,500 $ 426,600 $ 633,950 $ 0 $ 11,900 $ 31,650 $ 92,150 $ 182,950 $ 338,500 $ 426,600 $ 633,950 $ 0 $ 12,400 $ 22,275 $ 52,525 $ 97,925 $ 175,700 $ 219,750 $ 323,425 Married Filling Jointly $ 0.00 $ 0.00 $ 987.50 $ 4,617.50 $ 14,605.50 $ 33,271.50 $ 47,367.50 $ 83,653.75 Single or Married Filling Separately $ 0.00 $ 0.00 $ 493.75 $ 12,400 $ 22,275 $ 52,525 $ 97,925 $ 175,700 $ 219,750 $ 323,425 $ 0 $ 12,400 $ 22,275 $ 52,525 $ 97,925 $ 175,700 $ 219,750 $ 323,425 0% 0% 10% 10% 12% 12% 22% 22% 24% 24% 32% 32% 35% 35% 37% 37% $ 0 $ 3,800 $ 13,675 $ 3,800 $ 13,675 $ 43,925 $ 0 $ 3,800 $ 13,675 $ 6,200 $ 11,138 $ 26,263 $ 0 $ 6,200 $ 11,138 0% $0 0% $ 6,200 $ 11,138 10% 10% 12% 12%
Transcribed Image Text:2020 Percentage Method Tables for Automated Payroll Systems STANDARD Withholding Rate Schedules Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the Form W-4 is from 2020 or later and the box in Step 2 of Form W-4 IS checked) (Use these if the Form W-4 is from 2019 or earlier, or if the Form W-4 is from 2020 or later and the box in Step 2 of Form W-4 is NOT checked) of the amount that the of the amount that the If the Adjusted Annual Wage Amount (line 2a) is: If the Adjusted Annual Wage Amount (line 2a) is: The tentative Adjusted Annual The Adjusted Annual Plus this tentative Plus this But less But less Wage exceeds- Wage exceeds- amount to percentage amount to percentage At least- than- withhold is: At least- than- withhold is: А В C E А В E $ 0 $ 11,900 $ 31,650 $ 92,150 $ 182,950 $ 338,500 $ 426,600 $ 633,950 Married Filling Jointly $ 0.00 $ 0.00 $ 1,975.00 $ 9,235.00 $ 29,211.00 $ 66,543.00 $ 94,735.00 $ 167,307.50 Single or Married Filling Separately $ 0.00 $ 0.00 $ 987.50 $ 11,900 $ 31,650 $ 92,150 $ 182,950 $ 338,500 $ 426,600 $ 633,950 $ 0 $ 11,900 $ 31,650 $ 92,150 $ 182,950 $ 338,500 $ 426,600 $ 633,950 $ 0 $ 12,400 $ 22,275 $ 52,525 $ 97,925 $ 175,700 $ 219,750 $ 323,425 Married Filling Jointly $ 0.00 $ 0.00 $ 987.50 $ 4,617.50 $ 14,605.50 $ 33,271.50 $ 47,367.50 $ 83,653.75 Single or Married Filling Separately $ 0.00 $ 0.00 $ 493.75 $ 12,400 $ 22,275 $ 52,525 $ 97,925 $ 175,700 $ 219,750 $ 323,425 $ 0 $ 12,400 $ 22,275 $ 52,525 $ 97,925 $ 175,700 $ 219,750 $ 323,425 0% 0% 10% 10% 12% 12% 22% 22% 24% 24% 32% 32% 35% 35% 37% 37% $ 0 $ 3,800 $ 13,675 $ 3,800 $ 13,675 $ 43,925 $ 0 $ 3,800 $ 13,675 $ 6,200 $ 11,138 $ 26,263 $ 0 $ 6,200 $ 11,138 0% $0 0% $ 6,200 $ 11,138 10% 10% 12% 12%
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