Answered step by step
Verified Expert Solution
Question
1 Approved Answer
For each employee listed, use the wage-bracket method to calculate federal income tax withholding, assuming that each has submitted a pre-2020 Form W-4. Then calculate
For each employee listed, use the wage-bracket method to calculate federal income tax withholding, assuming that each has submitted a pre-2020 Form W-4. Then calculate bot he state income tax withholding (assuming a state tax rate of 5.0% of taxable pay, with taxable pay being the same for federal and state income tax withholding), and the loce ncome tax withholding. Refer to Publication 15-T. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1. Jay Monroe (single; 2 federal withholding allowances) earned weekly gross pay of $1,145. For each period, he makes a 401(k) retirement plan contribution of 12% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 2% of an employee's taxable pay (which is the same for forme tax withholding) on residents and 1.7% of an employee's taxable pay on nonresidents. Federal income tax withholding = State income tax withholding =$ Local income tax withholding =$ 2: Gus Damon (married; 9 federal withholding allowances) earned weekly gross pay of $1,200. He contributes $125 to a flexible spending account during the period. The city in which he lives and works levies a tax of 3% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents and 0.40% of an employee's taxable pay on nonresidents. Federal income tax withholding =$ State income tax withholding =$ Local income tax withholding =$ 3: Kenneth Riley (single; 0 federal withholding allowances) earned weekly gross pay of $1,000. For each period, he makes a 403 (b) retirement plan contribution of 5% of gross pay. The city in which he lives and works levies a tax of 1.7% of an employee's taxable pay (which is the same for federal and local income tax withholding) on both residents and nonresidents. Federal income tax withholding =$ State income tax withholding =$ Local income tax withholding =$ 4: Ross McMichael (married; 2 federal withholding allowances) earned weekly gross pay of $970. He pays $60 to a cafeteria plan during the period. The city in which he works levies a tax of $8/ week on employees who work within city limits. Federal income tax withholding =$ State income tax withholding =$ Local income tax withholding =$ For each employee listed, use the wage-bracket method to calculate federal income tax withholding, assuming that each has submitted a pre-2020 Form W-4. Then calculate bot he state income tax withholding (assuming a state tax rate of 5.0% of taxable pay, with taxable pay being the same for federal and state income tax withholding), and the loce ncome tax withholding. Refer to Publication 15-T. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1. Jay Monroe (single; 2 federal withholding allowances) earned weekly gross pay of $1,145. For each period, he makes a 401(k) retirement plan contribution of 12% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 2% of an employee's taxable pay (which is the same for forme tax withholding) on residents and 1.7% of an employee's taxable pay on nonresidents. Federal income tax withholding = State income tax withholding =$ Local income tax withholding =$ 2: Gus Damon (married; 9 federal withholding allowances) earned weekly gross pay of $1,200. He contributes $125 to a flexible spending account during the period. The city in which he lives and works levies a tax of 3% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents and 0.40% of an employee's taxable pay on nonresidents. Federal income tax withholding =$ State income tax withholding =$ Local income tax withholding =$ 3: Kenneth Riley (single; 0 federal withholding allowances) earned weekly gross pay of $1,000. For each period, he makes a 403 (b) retirement plan contribution of 5% of gross pay. The city in which he lives and works levies a tax of 1.7% of an employee's taxable pay (which is the same for federal and local income tax withholding) on both residents and nonresidents. Federal income tax withholding =$ State income tax withholding =$ Local income tax withholding =$ 4: Ross McMichael (married; 2 federal withholding allowances) earned weekly gross pay of $970. He pays $60 to a cafeteria plan during the period. The city in which he works levies a tax of $8/ week on employees who work within city limits. Federal income tax withholding =$ State income tax withholding =$ Local income tax withholding =$
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