Example 4-3 To use the wage-bracket method, follow the steps illustrated below. Step 1 Select the withholding table that applies to the Adrienne Huff is married and claims 3 allowances. She is paid weekly employee's marital status and pay period. at a rate of $815 Step 2 Locate the wage bracket (the first two columns of the table) in which the employee's gross wages fall. Locate the appropriate wage bracket (see Figure 4.7): At least $810 but less than $821 Step 3 Follow the line for the wage bracket across to the right to the column showing the appropriate number of allowances. Withhold this amount of tax. Move across the line to the column showing 3 allowances The tax to withhold is $35. Figure 19 The names of the employees of Hagan Thrift Shop are listed on the following payroll register. Employees are paid weekly. The marital status and the number of allowances claimed are shown on the payroll register, along with each employee's weekly salary, which has remained the same all year. Complete the payroll register for the payroll period ending December 20, 20, the 51st weekly payday. The state income tax rate is 2% of total earnings, the city income tax rate is 1.5% of the total gross earnings, and the wage-bracket method is used for federal income taxes. Hint: If wages are higher than the last amount on the appropriate wage bracket table, the percentage method must be used Enter all amounts as positive numbers. Round your calculations and final answers to the heart ront The names of the employees of Hogan Thrift Shop are listed on the following payroll register Employees are paid weekly. The marital status and the number of allowances claimed are shown on the payroll register, along with each employee's weekly salary, which has remained the same all year. Complete the payroll register for the payroll period ending December 20, 20-, the 51st weekly payday. The state income tax rate is 25 of total carnings, the city income tax rate is 1.5% of the total gross earnings, and the wage-bracket method is used for federal income taxes. Hint: If wages are higher than the last amount on the appropriate wage-bracket table, the percentage method must be used Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent. Click here to access the Table of Allowance Values Click here to access the Wage-Bracket Method Tables Click here to access the percentage Method Tables Hogan Thrift Shop Payroll Register Deductions FOR PERIOD ENDING December 20, 20 (a) FICA Employee Marital No. or W/H Total (c) (d) Name Status Allowances Earnings OASDI HI FIT SIT CIT John, Matthew M 3 $2,650.00 Smith, Jennifer s 1 275.00 17.05 3.99 5.50 4.13 Bullen, Catherine M 0 15.50 3.63 5.00 3.75 Matthews, Mary S 3 320.25 19.86 4.64 6.41 4.80 Hadt, Bonnie s 1 450.00 27.90 6.53 9.00 6.75 Net Pay 250.00 Ock My Work (a) FICA FOR PERIOD ENDING December 20, 20. Employee Marital No. of W/H Total Name Status Allowances Earnings John, Matthew M 3 $2,650.00 OASDI (b) FIT (c) SIT HI (d) CIT (e) Net Pay Smith, Jennifer s ** 275.00 17.05 3.99 5.50 4.13 Bullen, Catherine M 0 250.00 15.50 3.63 5.00 3.75 Matthews, Mary s 320.25 19.86 4.64 6.41 4.80 S 450.00 27.90 6.53 Hadt, Bonnie Camp. Sean 9.00 6.75 5 2 560.50 34.75 8.13 11.21 8.41 s 475.50 29.48 9.51 7.13 Wilson, Helen Gleason, Josie Totals M 3 890.00 55.18 12.91 17.80 13.35 $5,871.25 Compute the employer's FICA taxes for the pay period ending December 20, 20 OASDI Taxes HI Taxes OASI taxable earnings Hi taxable earnings HI taxes OASDI taxes
