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how to compute federal withholding tax using percentage. I keep getting stuck on step 6 9 See Below) 1. Total wage payment $800.00 2. One
how to compute federal withholding tax using percentage. I keep getting stuck on step 6 9 See Below)
1. | Total wage payment | $800.00 | |
2. | One allowance | $77.90 | |
3. | Allowances claimed on Form W-4 | 2 | |
4. | Multiply line 2 by line 3 | $155.80 | |
5 | Amount subject to withholding (subtract line 4 from line 1) | $644.20 | |
6. | Tax to be withheld on $644.20 from Table 1single person, Table Link | $81.23 |
Explanation for step 6:
Go to Table 1 (a) Single Person
$644.20 is OVER $222 BUT NOT OVER $767 so to compute amount to withhold
$17.90 plus $15% of Excess over $222
Computation: $17.90 + 15% (644.20-222) = $17.90 + 63.33 = $81.23
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