Joseph Farmer earned $123,800 in 2018 for a company in Kentucky. He is single with one withholding allowance and is paid annually. The FUTA rate in Kentucky for 2018 is 0.6 percent on the first $7,000 of employee wages, and the SUTA rate is 5.4 percent with a wage base of $10,200. Use the percentage method withholding tables in Appendix C and the state information in Appendix D. Use Figure 5.3. Need help to how calculate the federal income tax withholding.