PSb 3-8 Calculate Federal (Wage-Bracket Method - Pre-2020 Form W-4), State, and Local Income Tax Withholding 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 Publication 15-T. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
PSb 3-8 Calculate Federal (Wage-Bracket Method - Pre-2020 Form W-4), State, and Local Income Tax Withholding 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 Publication 15-T. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3: Kenneth Riley (single; O federal withholding allowances) earned weekly gross pay of $1,000. For each period, he makes a 403(b) retirement plan contribution of 5% of
gross pay. The city in which he lives and works levies a tax of 1.7% of an employee's taxable pay (which is the same for federal and local income tax withholding) on both
residents and nonresidents.
Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $
4: Ross McMichael (married; 2 federal withholding allowances) eamed weekly gross pay of $970. He pays $60 to a cafeteria plan during the period. The city in which he
works levies a tax of $8/week on employees who work within city limits.
Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $
Transcribed Image Text:PSb 3-8 Calculate Federal (Wage-Bracket Method - Pre-2020 Form W-4), State, and Local Income Tax Withholding
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 Publication 15-T.
NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
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