CH. 7
#8
table 7.1
table 7.2
Richard Gaziano is a manager for Health Care, Inc. Health Care deducts Social Security, Medicare, and FIT (by percentage method) from his earnings. Assume a rate of 6.2% on $118,500 for Social Security and 1.45% for Medicare. Before this payroll, Richard is $1,000 below the maximum level for Social Security earnings. Richard is married, is paid weekly, and claims 2 exemptions What is Richard's net pay for the week if he earns $1,800? (Use Table 71 and Table 7.2). (Round your answer to the nearest cent.) Net pay Payroll Period One Withholding Allowance Weekly Biweekly .. . $ 76.90 153.80 166.70 333.30 1,000.00 2,000.00 4,000.00 Monthly Daily or miscellaneous (each day of the payroll period) 15.40 Percentage Method Tables for Income Tax Withholding TABLE 1-WEEKLY Payroll Period (a) SINGLE person (including head of household- If the amount of withholding allowances) is: OverBut not over_ (b) MARRIED person- If the amount of wages (after su withholding allowances) is: Not over $165 The amount of income tax to withhold is S0 The amount of income tax to withhold is: $0 over of excess over-Over-But not over- of excess over- $165 -$222 -$764 $000 plus 10% $17.80 plus 15% $99, 10 plus 25% $355.35 plus 28% $886.23 plus 33% $2296.32 plus 35% -5520 , , $0.00 plus 10% , . -$222| -$764| -$1,789| -53,685| -$7,958| $520-$1.606 .. $1.606-$3,073 , $3,073-$4,597 $4.597-$8,079 . $8.079-$9.105 $35.50 plus 15% $198.40 plus 25% $565, 15 plus 28% $991.87 plus 33% $2,140.93 plus 35% .. $764 --$1,789 . $1 . $1,789 --$3,685 $3,685 --$7,958 $7.958-$7,990 $3,073 $4,597 -$8,079 -59, 105 , , 990 2,500.03 plus 39.6% TABLE 2-BIWEEKLY Payroll Period (a) SINGLE person (including head of household If the amount of wages (b) MARRIED person- amount of income tax withholding allowances) is: Not over $88 to withhold is S0 withholding allowances) is: to withhold is: Over-But not over_ of excess over- Over-But not over-_ of excess over- excess over-|Not Overngalowances) s: The $88 $443-51,529 $1,529-53579 $3.579-$7,369 $7,369-515915 $15.915-$15.981 $35.50 plus 15% $19840 plus 25% $710.90 plus 28% $177210 plus 33% $4592.28 plus 35% $4615.38 plus 39.6% -$88| -5443| -81,529| -53,579| -$7,369| -$15,915| $331-51040 $0.00 plus 10% $1,040-53,212.570 90 plus 15% $3.212-$6,146 $396.70 plus 25% $6,146 _$9,194 $1,130.20 plus 28% $9,194 --$16,158 $1,983.64 plus 33% $16.158 --$18.210, $4.281.76 plus 35% -$3,212 -$9,194 $4,999.96 plus 39.6% TABLE 3 SEMIMONTHLY Payroll Period (a) SINGLE person (including head of household)- If the amount of wages (b) MARRIED person- If the amount of wages The amount of income tax to withhold is: The amount of income tax withholding allowances) is: Not over $96 Over-But not over_ withholding allowances) is: to withhold is Not over of excess over-OverBut not over_ $358-$1,127 , , of excess over- $96 -$480 --$1,656 $000 plus 10% $38.40 plus 15% $214.80 plus 25% $770.05 plus 28% $1.919.73 plus 33% $4975.20 plus 35% $5000.05 plus 39.6% --$96| -$480| $480 $1,656 --$3,877 . , $3,877 --$7,983 . . $7.983-$17,242 , $1,127-$3,479 $3,479-$6,658 $6.658-$9.960.. $9.960 $0.00 plus 10% $76.90 plus 15% $429.70 plus 25% $1,224.45 plus 28% $2,149.01 plus 33% $4,638.53 plus 35% $5,416.58 -$1,127 -$6,658 $9 -$1,656| -53.8771 -57.963| --$17.504 --$19,727.. $17.242-$17,313 , S17.313 -$17.242| $17,504 $17,313 $19,727 19,727 TABLE 4 MONTHLY Payroll Period (a) SINGLE person (including head of household)- If the amount of wages (b) MARRIED person- If the amount of wages The amount of income tax to withhold is: withholding allowances) is: to withhold is $0 withholding allowances) is: Not over $717 over But not over-_ -$960 of excess over- OverBut not over- $717-$2.254.. of excess over-- $000 plus 10% $78.80 plus 15% $429.75 plus 25% $1,540.00 plus 28% $3839.64 plus 33% $9949.92 plus 35% $9999.62 plus 39.6% -$192| -5960| -53,313| -57,754| -$15,967| -$34,483| $0.00 plus 10% $153.70 plus 15% $859.30 plus 25% $2,449.05 plus 28% $4.298.17plus 33% $9,276.88 plus 35% $10,832.98 plus 39.6% 960-53313.. $2.254-$6.958 , $6.958 --$13,317, $13.317-$19.921.. -$6,958 -$19,921 -$39,454 $3,313-57,754 $7.754-515,967 . . $15,967-$34,483 , $34.483-$34,625 , $19.921-$35,008 $35,008-$39,454 . $34,625 $34,625 $39,454
