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Example 4 3 To compute the tax using the percentage method for Manual Payroll Systems with Forms W-4 from 2020 or later using Standard Withholding

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Example 4 3 To compute the tax using the percentage method for Manual Payroll Systems with Forms W-4 from 2020 or later using Standard Withholding Rate Schedules, follow the steps illustrated below. Step 1 Determine the amount of gross wages earned, filing status, adjustments on Form W-4, and frequency of pay. Note: If the wage ends in a fractional dollar amount, the wage may be Wilson Goodman, single(s), has no adjustments on his Form - rounded to the nearest dollar. However, in this text, exact W.4 and earns $915.60 semimonthly wages are used Compute tax from Tax Table A, Semimonthly, Standard Withholding Rate Schedule, page T-3. Step 2 Determine the withholding tax by referring to the appropriate Percentage Method withholding Table (see Figure 4.6 below) ($915.60 - $523.00 - $392.60 X 10% $39.26 + $0) = $39.26 Example 4.4 To use the wage bracket method for Manual Payroll Systems with Forms w a From 2020 or later using Standard Withholding, follow the steps illustrated below. Step 1 Select the withholding table that applies to the employee's pay period - Adrienne Huff is mamed filing jointly (MP)). She is paid weekly at a rate of $815 Step 2 Locate the wage bracket (the first two columns of the table) in which the employee's grosswages fall Locate the appropriate wage bracket (see Figure 1.7) At least $815 but less than $425 Step 3 Follow the line for the wage bracket across to the right to the column showing the appropriate filing status with standard Move across the line to the column showing Mamed Filing withholding. Withhold the amount of tax Jointly, Standard withholding The tax to withhold is $34 Use (a) the percentage method and (b) the wage bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee. Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent. As we go to press, the federal income tax rates for 2022 are being determined by budget talks in Washington and not available for publication. For this edition, the 2021 federal income tax tables for Manual Systems with Forms W4 from 2070 or later with standard Withholding and 2021 FICA rates have been used. Click here to scoss the Percentage Method Tables Click here to access the Woge Bracket Method Tables Amount to Be withheld No. of Withholding Allowances Employee Status Gross Wage or Salary Percentage Method Wage Bracket Method Amount to Be Withheld Filing Status No. of Withholding Allowances Employee Gross Wage or Salary Percentage Method Wage-Bracket Method Lennon, A. in N/A $675 weekly Starr, P. S N/A 1,365 weekly McNeil, S. MF) N/A 1,775 biweekly IllI MFJ N/A 2,480 semimonthly Harrison, W. Smythe, M. MF) N/A 5,380 monthly

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