PSc 3-5 Calculate Federal Income Tax Withholding Using Two Methods (Pre-2020 Form W-4) For each employee listed, use both the wage-bracket method and the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4. 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. 1: Michael Daugherty (married; 5 federal withholding allowances) earned weekly gross pay of $875. For each period, he makes a 403(b) retirement plan contribution of 14% of gross pay. Using wage-bracket method: Federal income tax withholding = $ Using percentage method: Federal income tax withholding = $ 2: Carol Harrison (single; 0 federal withholding allowance) earned daily gross pay of $210. For each period, she makes a 401(k) contribution of 13% of gross pay. Using wage-bracket method: Federal income tax withholding = $ Using percentage method: Federal income tax withholding = $ 3: John Moyer (married; federal withholding allowances) earned monthly gross pay of $3,090. He participates in a flexible spending account, to which he contributes $255 during the period. Using wage-bracket method: Federal income tax withholding = S Using percentage method: Federal income tax withholding = $
PSc 3-5 Calculate Federal Income Tax Withholding Using Two Methods (Pre-2020 Form W-4) For each employee listed, use both the wage-bracket method and the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4. 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. 1: Michael Daugherty (married; 5 federal withholding allowances) earned weekly gross pay of $875. For each period, he makes a 403(b) retirement plan contribution of 14% of gross pay. Using wage-bracket method: Federal income tax withholding = $ Using percentage method: Federal income tax withholding = $ 2: Carol Harrison (single; 0 federal withholding allowance) earned daily gross pay of $210. For each period, she makes a 401(k) contribution of 13% of gross pay. Using wage-bracket method: Federal income tax withholding = $ Using percentage method: Federal income tax withholding = $ 3: John Moyer (married; federal withholding allowances) earned monthly gross pay of $3,090. He participates in a flexible spending account, to which he contributes $255 during the period. Using wage-bracket method: Federal income tax withholding = S Using percentage method: Federal income tax withholding = $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PSc 3-5 Calculate Federal Income Tax Withholding Using Two Methods (Pre-2020 Form W-4)
For each employee listed, use both the wage-bracket method and the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020
Form W-4. 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.
1: Michael Daugherty (married; 5 federal withholding allowances) earned weekly gross pay of $875. For each period, he makes a 403(b) retirement plan contribution of 14%
of gross pay.
Using wage-bracket method: Federal income tax withholding = $
Using percentage method: Federal income tax withholding = $
2: Carol Harrison (single; 0 federal withholding allowance) earned daily gross pay of $210. For each period, she makes a 401(k) contribution of 13% of gross pay.
Using wage-bracket method: Federal income tax withholding = $
Using percentage method: Federal income tax withholding = $
3: John Moyer (married;
federal withholding allowances) earned monthly gross pay of $3,090. He participates in a flexible spending account, to which he contributes $255
during the period.
Using wage-bracket method: Federal income tax withholding = S
Using percentage method: Federal income tax withholding = $
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