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.
1:Paul Bronson (single; 1 federal withholding allowance) earned weekly gross pay of $1,284. For each period, he makes a 401(k) retirement plan contribution of 10.5% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 2% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents, and 0.7% of an employee's taxable pay on nonresidents. Federal income tax withholding = $ State income tax withholding = $ Local income tax withholding = $
Please write down every step so that I can understand where the numbers are coming from.
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