Figure 1.9 Example 4-9 From the above example, if you indicate separately on Robinson's paycheck stub the amount of each payment, the amount of federal income tax to be withheld is computed as follows: Taxes Withheld Regular monthly earnings $2,400 (from wage-bracket tax tables*) Quarterly bonus $ 32.00 1,012.00 $1,044.00 4,600 $7,000 ($4,600 x 22%) Totals The calculation of Robinson's federal income tax for the quarter would be computed as follows: Taxes Withheld Regular monthly earnings $2,400 $32.00 x 3 months $ 96.00 (from wage-bracket tax table B*) 1,012.00 (54,600 x 22%) Quarterly bonus 4,600 $1,108.00 I The percentage table could also be used Note OASDI and HT withholdings are calculated on total earnings per pay period multiplied by number of pay periods and then added together to s total withholding. Quarterly and year-to-date information would appear on Remployee earnings recorte The names of the employees of Matson Office Systems and their regular salaries are shown in the following payroll register. Note that Wayne and Young are paid mont payday, while all others are paid weekly. The names of the employees of Matson Office Systems and their regular salaries are shown in the following payroll register. Note that Wayne and Young are paid monthly on the last payday, while all others are paid weekly. In addition to the regular salaries, the company pays an annual bonus based on the amount of earnings for the year. For the current year, the bonus amounts to 8% of the annual salary paid to each employee. The bonus is to be paid along with the regular salaries on December 27, 20-, but the amount of the bonus and the amount of the regular salary will be shown separately on each employee's earnings statement. Assume that all employees received their regular salary during the entire year. Prepare the payroll for the pay period ending December 27, 20-, showing the following for each employee: Use the wage-bracket method to withhold federal income tax from the regular salaries. Withhold a flat 22% on the annual bonus. Total salaries and bonuses are subject to a 2% state income tax and a 1% city income tax.. Enter all amounts as positive numbers. Round your 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 W-4 from 2020 or later with Standard Withholding and 2021 FICA rates have been used. Click here to access the Wage-Bracket Method Tables. For Period Ending December 27, 20 I Earnings De Marital No. of W/H Allowances (b) (c) FICA Total Status Employee Name Regular OASDI **** Wayne, Def N/A $3,000.00 Young Gio N/A 2.500.00 Supp'l. 2,880 2.400 5,880 4.900 364.56 HI 85.26 For Period Ending December 27, 20-- No. of Marital W/H Employee Name Status Allowances Wayne, Bret MFJ N/A Young, Gina MFJ N/A 2,500.00* Course, Rudy S N/A 810.00 Dickson, Emile MFJ N/A 715.00 Woodrow, Walt MFJ N/A 695.00 Noblet, Jim S N/A 525.00 MFJ Ono, Joan N/A 800.00 S Jones, Carrie N/A 645.00 Totals *Monthly Compute the employer's FICA taxes for the pay period ending December 27, 20 HI Taxes OASDI Taxes HI taxable earnings Ant Fax Regular $3,000.00 Earnings Supp'l. 2,880. 2,400 777.6 X 868.4 X (b) Total 5,880 4,900 1,587.60 X OASDI (c) FICA 364.56 HI 85.26 De ngs (a) supp'l. 2,880 V 2,400 777.6 X 868.4 X (b) Total 5,880 4,900 1,587.60 X OASDI (c) FICA 364.56 HI 85.26 Deductions (d) FIT 588 X (e) SIT 117.60 (1) CIT 58.50 X (9) Net Pay 4,665.78X Jones, Carrie N/A 645.00 Totals *Monthly Compute the employer's FICA taxes for the pay period ending December 27, 20 OASDI Taxes HI Taxes OASDI taxable earnings i HI taxable earnings OASDI taxes HI taxes Feedback Check My Work a. Calculate bonus at 8% of annual salary; note two employees are paid monthly. b. Add regular salary and bonus (suppl.). c. Calculate OASDI and HI using appropriate rates. Consider date of pay to ensure employees have not reached OASDI ceiling. d. Calculate FIT on regul wages using Wage bracket nfethod, calculate FIT on bonus (Supp1.) using 22%: total FIT on regular wages and bonus. e. Calculate SIT based on total earnings multiplied by SIT rate. f. Calculate CIT based on total earnings multiplied by CIT rate. g. Total earnings minus deductions net pay h. Calculate Employer's OASDI and HI using QASDI and HI taxable earnings; consider OASDI ceiling. Figure 1.9 Example 4-9 From the above example, if you indicate separately on Robinson's paycheck stub the amount of each payment, the amount of federal income tax to be withheld is computed as follows: Taxes Withheld Regular monthly earnings $2,400 (from wage-bracket tax tables*) Quarterly bonus $ 32.00 1,012.00 $1,044.00 4,600 $7,000 ($4,600 x 22%) Totals The calculation of Robinson's federal income tax for the quarter would be computed as follows: Taxes Withheld Regular monthly earnings $2,400 $32.00 x 3 months $ 96.00 (from wage-bracket tax table B*) 1,012.00 (54,600 x 22%) Quarterly bonus 4,600 $1,108.00 I The percentage table could also be used Note OASDI and HT withholdings are calculated on total earnings per pay period multiplied by number of pay periods and then added together to s total withholding. Quarterly and year-to-date information would appear on Remployee earnings recorte The names of the employees of Matson Office Systems and their regular salaries are shown in the following payroll register. Note that Wayne and Young are paid mont payday, while all others are paid weekly. The names of the employees of Matson Office Systems and their regular salaries are shown in the following payroll register. Note that Wayne and Young are paid monthly on the last payday, while all others are paid weekly. In addition to the regular salaries, the company pays an annual bonus based on the amount of earnings for the year. For the current year, the bonus amounts to 8% of the annual salary paid to each employee. The bonus is to be paid along with the regular salaries on December 27, 20-, but the amount of the bonus and the amount of the regular salary will be shown separately on each employee's earnings statement. Assume that all employees received their regular salary during the entire year. Prepare the payroll for the pay period ending December 27, 20-, showing the following for each employee: Use the wage-bracket method to withhold federal income tax from the regular salaries. Withhold a flat 22% on the annual bonus. Total salaries and bonuses are subject to a 2% state income tax and a 1% city income tax.. Enter all amounts as positive numbers. Round your 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 W-4 from 2020 or later with Standard Withholding and 2021 FICA rates have been used. Click here to access the Wage-Bracket Method Tables. For Period Ending December 27, 20 I Earnings De Marital No. of W/H Allowances (b) (c) FICA Total Status Employee Name Regular OASDI **** Wayne, Def N/A $3,000.00 Young Gio N/A 2.500.00 Supp'l. 2,880 2.400 5,880 4.900 364.56 HI 85.26 For Period Ending December 27, 20-- No. of Marital W/H Employee Name Status Allowances Wayne, Bret MFJ N/A Young, Gina MFJ N/A 2,500.00* Course, Rudy S N/A 810.00 Dickson, Emile MFJ N/A 715.00 Woodrow, Walt MFJ N/A 695.00 Noblet, Jim S N/A 525.00 MFJ Ono, Joan N/A 800.00 S Jones, Carrie N/A 645.00 Totals *Monthly Compute the employer's FICA taxes for the pay period ending December 27, 20 HI Taxes OASDI Taxes HI taxable earnings Ant Fax Regular $3,000.00 Earnings Supp'l. 2,880. 2,400 777.6 X 868.4 X (b) Total 5,880 4,900 1,587.60 X OASDI (c) FICA 364.56 HI 85.26 De ngs (a) supp'l. 2,880 V 2,400 777.6 X 868.4 X (b) Total 5,880 4,900 1,587.60 X OASDI (c) FICA 364.56 HI 85.26 Deductions (d) FIT 588 X (e) SIT 117.60 (1) CIT 58.50 X (9) Net Pay 4,665.78X Jones, Carrie N/A 645.00 Totals *Monthly Compute the employer's FICA taxes for the pay period ending December 27, 20 OASDI Taxes HI Taxes OASDI taxable earnings i HI taxable earnings OASDI taxes HI taxes Feedback Check My Work a. Calculate bonus at 8% of annual salary; note two employees are paid monthly. b. Add regular salary and bonus (suppl.). c. Calculate OASDI and HI using appropriate rates. Consider date of pay to ensure employees have not reached OASDI ceiling. d. Calculate FIT on regul wages using Wage bracket nfethod, calculate FIT on bonus (Supp1.) using 22%: total FIT on regular wages and bonus. e. Calculate SIT based on total earnings multiplied by SIT rate. f. Calculate CIT based on total earnings multiplied by CIT rate. g. Total earnings minus deductions net pay h. Calculate Employer's OASDI and HI using QASDI and HI taxable earnings; consider OASDI ceiling