7 Bill Burne's earnings are subject to deductions for Social Security, Medicare, and FIT. To date his cumulative earnings are $110,000. This week Bill earns $1,200. Bill, who is married, is paid weekly and claims three exemptions. Assume the Social Security rate is 6.2% on $118,500 and 1.45% for Medicare. His net pay for the week is: (Use Table 71 and Table 7.2) Multiple Choice $534.70 O $1.005.30 O O $1.039.90 O 957.77 Payroll Period One Withholding Allowance $ 76.90 153.80 166.70 333.30 Weekly Biweekly Semimonthly Monthly Quarterly Semiannually Annually Daily or miscellaneous (each day of the payroll period). 1,000.00 2,000.00 4,000.00 15.40 Percentage Method Tables for Income Tax Withholding TABLE 1-WEEKLY Payroll Period (a) SINGLE person (including head of household) (b) MARRIED person- If the amount of wages If the amount of wages (after subtracting The amount of income tax (after subtracting The amount of income tax withholding allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $44 $0 Not over $165 $0 Over- But not over of excess over-Over- But not over- of excess over- $44 --$222 $0.00 plus 10% -$44 $165 -$520 $0.00 plus 10% -$165 -$764 $17.80 plus 15% -$222 $520 -$1,606 $35.50 plus 15% -$520 $764 -$1,789 $99.10 plus 25% - $764 $1,606 -$3,073 . $198.40 plus 25% -$1,606 $1,789 -$3,685 $355.35 plus 28% -$1,789 $3,073 -$4,597 $565.15 plus 28% -$3,073 $3,685 -$7,958 $886.23 plus 33% -$3,685 $4,597 -$8,079 $991.87 plus 33% $4,597 $7,958 -$7,990 $2 296.32 plus 35% -$7,958 $8,079 -$9,105 $2,140.93 plus 35% -$8,079 $7,990 $2,307.52 plus 39.6% -$7.990 $9,105 $2,500.03 plus 39.6% $9,105 TABLE 2-BTWEEKLY Payroll Period $222 (a) SINGLE person (including head of household)- (b) MARRIED person- If the amount of wages If the amount of wages (after subtracting The amount of income tax (after subtracting The amount of income tax withholding allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $88. 30 Not over $331 ... $0 Over- But not over of excess over-Over- But not over- of excess over- $88 - $443 $0.00 plus 10% -$88 $331 -$1,040 $0.00 plus 10% -$331 $443 -51,529 $35.50 plus 15% -$443 $1,040 -$3,212 $70.90 plus 15% -$1,040 $1,529 - $3,579 $198.40 plus 25% -31,529 $3,212 --$6,146 $396.70 plus 25% -$3,212 $3,579 -$7,369 $710.90 plus 28% -33,579 $6.146 -$9,194 $1,130.20 plus 28% -$6,146 $7,369 -$15,915 $1.772.10 plus 33% -37,369 $9,194 -$16,158 $1,983.64 plus 33% -$9,194 $15.915 -$15,981 $4,592.28 plus 35% -$15,915 $16,158 -$18,210 .. $4,281.76 plus 35% -$16,158 $15.981 $4.615.38 plus 39.6% -$15,981 $18.210 $4,999.96 plus 39.6% -$18,210 TABLE 3-SEMIMONTHLY Payroll Period (a) SINGLE person (including head of household (b) MARRIED person- If the amount of wages If the amount of wages (after subtracting The amount of income tax (after subtracting The amount of income tax withholding allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $96 SO Not over $358 $0 Over- But not over of excess over-Over- But not over- of excess over- $96 -$480 $0.00 plus 10% -$96 $358 -$1,127 $0.00 plus 10% -$358 $480 -$1,656 $33.40 plus 15% -$480 $1,127 $3,479 $76.90 plus 15% -$1,127 $1,656 -$3,877 $214.80 plus 25% -$1,656 $3,479 -$6,658 $429.70 plus 25% -$3,479 $3,877 -$7,983 .. $770.05 plus 28% 3,877 $6,658 -$9,960 $1,224.45 plus 28% - $6,658 $7.983 -$17.242 $1.919.73 plus 33% $7,983 $9.960 -$17,504 $2,149.01 plus 33% -$9,960 $17.242 -$17,313 $4.975.20 plus 36% $17.242 $17.504 -$19,727 $4,638.53 plus 35% -$17,504 $17,313 $5,000.05 plus 39.6% $17,313 $19,727 $5,416.58 plus 39.6% -$19,727 TABLE 4 MONTHLY Payroll Period (a) SINGLE person (including head of household) (b) MARRIED person- If the amount of wages If the amount of wages (after subtracting The amount of income tax (after subtracting withholding allowances) is: to withhold is: withholding allowances) is: Not over $192 $0 Not over $717 Over- But not over of excess over-Over- But not over- $192 -$960 $0.00 plus 10% -$192 $717 -$2,254 $960 - $3,313 $76.80 plus 15% - $960 $2,254 -$6,958 $3,313 -$7,754 $429.75 plus 25% -$3,313 $6,958 -$13,317 $7,754 -$15,967 $1,540.00 plus 28% -$7.754 $13,317 -$19,921 $15,967 -$34,483 $3,839.64 plus 33% -$15,967 $19,921 $35,008 $34,483 -$34,625 $9,949.92 plus 35% -$34,483 $35,008 $39,454 $34,625 $9,999.62 plus 39.6% -$34,625 $39,454 The amount of income tax to withhold is: $0 of excess over- $0.00 plus 10% -$717 $153.70 plus 15% -$2,254 $859.30 plus 25% -$6,958 $2,449.05 plus 28% -$13,317 $4,298.17 plus 33% -$19,921 $9,276.88 plus 35% --$35,008 $10,832.98 plus 39.6% -$39,454