Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Company XYZ has a new employee that submitted form W-4 from 2020 He is married filing jointly and box 2 is not checked. The employer
Company XYZ has a new employee that submitted form W-4 from 2020 He is married filing jointly and box 2 is not checked. The employer processes payroll automatically and he has paycheck of $1,500 and is paid semi-monthly Using the percentage method, the worksheet, and the correct table calculate the employee's federal withholding tax for each pay check. ***Enter the pay information into the highlighted cells next to the worksheet Step 2. Figure the Tentative Withholding Amount based on the employee's Adjusted Annual Wage Amount; filing status (Step 1(c) of the 2020 Form W-4) or marital status (line 3 of Form W-4 from 2019 or earlier); and whether the box in Step 2 of 2020 Form W-4 is checked. Note. Don't use the Head of Household table if the Form W-4 is from 2019 or earlier. 2a Enter the employee's Adjusted Annual Wage Amount from line 1 i or 1l above ............ . 2a \$ 2b Find the row in the appropriate Annual Percentage Method table in which the amount on line 2a is at least the amount in column A but less than the amount in column B, then enter here the amount from column A of that row 2c Enter the amount from column C of that row 2d Enter the percentage from column D of that row 20 Subtract line 2b from line 2a. 2f Multiply the amount on line 2e by the percentage on line 2d 2g Add lines 2c and 2f 2h Divide the amount on line 2g by the number of pay periods on line 1b. This is the Tentative Withholding Amount Step 3. Account for tax credits 3a If the employee's Form W-4 is from 2020, enter the amount from Step 3 of that form; otherwise Divide the amount on line 3 a by the number of pay periods on line 1b 3c Subtract line 3b from line 2h. If zero or less, enter 0 - . . Step 4. Figure the final amount to withhold 4a Enter the additional amount to withhold from the employee's Form W-4 (Step 4(c) of the 2020 form or 4b Add lines 3c and 4a. This is the amount to withhold from the employee's wages this
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started