Withholding Methods (LO 9.1) Sophie is a single taxpayer. For the first payroll period in July 2021, she is paid wages of $2,200 monthly. Sophie claims one allowance on her pre-2021 Form W-4. Click here to access the withholding tables. IRS Publication 15-T, Federal Income Tax Withholding Method Pay period 2021 Allowance Amount Weekly $ 83 Biweekly 165 Semimonthly 179 Monthly 358 Quarterly 1,075 Semiannually 2,150 Annually 4,300 Round intermediate computations and your final answer to two decimal places. Question Content Area Use the percentage method to calculate the amount of Sophie's withholding for a monthly pay period. Sophie's withholding: $fill in the blank b40091006028014_1 Feedback Area Feedback Employers are required to withhold taxes from amounts paid to employees for wages, including salaries, fees, bonuses, commissions, vacation and retirement pay. Form W-4, showing the filing status and the number of withholding allowances an employee is claiming, is furnished to the employer by the employee. The amount of income tax to be withheld by the employer is based on gross wages before deducting FICA taxes, pension payments, union dues, insurance, and other deductions. An employer may elect to use any of several methods to determine the amount of the income tax withholding for each individual employee. Most commonly, withholding amounts are determined by use of the percentage method or by use of wage bracket tables. Question Content Area Use the wage bracket method to determine the amount of Sophie's withholding for the same period. $fill in the blank 38337df57ff3fa2_1 Feedback Area Feedback Correct Question Content Area Use the percentage method assuming Sophie completed a post-2019 Form W-4 and checked only the single box in Step 1(c). $fill in the blank 0e96e104c025fe2_1
Problem 9-3
Withholding Methods (LO 9.1)
Sophie is a single taxpayer. For the first payroll period in July 2021, she is paid wages of $2,200 monthly. Sophie claims one allowance on her pre-2021 Form W-4.
Click here to access the withholding tables.
IRS Publication 15-T, Federal Income Tax Withholding Method
|
Pay period |
2021 Allowance Amount |
|
|
Weekly |
$ 83 |
|
|
Biweekly |
165 |
|
|
Semimonthly |
179 |
|
|
Monthly |
358 |
|
|
Quarterly |
1,075 |
|
|
Semiannually |
2,150 |
|
|
Annually |
4,300 |
|
Round intermediate computations and your final answer to two decimal places.
Question Content Area
- Use the percentage method to calculate the amount of Sophie's withholding for a monthly pay period.
Sophie's withholding: $fill in the blank b40091006028014_1
Feedback Area
Feedback
Employers are required to withhold taxes from amounts paid to employees for wages, including salaries, fees, bonuses, commissions, vacation and retirement pay. Form W-4, showing the filing status and the number of withholding allowances an employee is claiming, is furnished to the employer by the employee.
The amount of income tax to be withheld by the employer is based on gross wages before deducting FICA taxes, pension payments, union dues, insurance, and other deductions. An employer may elect to use any of several methods to determine the amount of the income tax withholding for each individual employee. Most commonly, withholding amounts are determined by use of the percentage method or by use of wage bracket tables.
Question Content Area
- Use the wage bracket method to determine the amount of Sophie's withholding for the same period.
$fill in the blank 38337df57ff3fa2_1
Feedback Area
Feedback
Correct
Question Content Area
- Use the percentage method assuming Sophie completed a post-2019 Form W-4 and checked only the single box in Step 1(c).
$fill in the blank 0e96e104c025fe2_1
Feedback Area
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