Question
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
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.
Alejandro Garcia (single; 3 federal withholding allowances) earned weekly gross pay of $1,125. He participates in a cafeteria plan, to which he pays $45 during the period. The city in which he works levies a tax of $11/week on employees who work within city limits. Federal income tax withholding = $ State income tax withholding = $ Local income tax withholding = $
Please write down every step so that I can understand where all of the numbers are coming from.
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