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Posted on Aug 11, 2024

Joseph O'Neill makes gross wages of $77307.69, which includes a supplemental $75000 bonus. Given that his SIMPLE reduction is $4000, what is the amount of

Joseph O'Neill makes gross wages of $77307.69, which includes a supplemental $75000 bonus. Given that his SIMPLE reduction is $4000, what is the amount of FIT withheld from his paycheck? He is married and claims 4 allowances. O'Neill paid bi-weekly and I have provided the wage bracket information in the questions.

Other notes: In calculating the tax, do not round the aggregate to the nearest earnings dollar. I don't think this makes a difference, but O'Neill has reached the OASDI ceiling.

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TAX TABLE Percentage Method Tables for Income Tax Withholding (For Wages Paid in 2018) TABLE 1-WEEKLY Payroll Period (a) SINGLE person (including head of household) (b) MARRIED person- If the amount of wages If the amount of wages (after subtracting The amount of income tax (after subtracting The amount of income tax withholding allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $71 Not over $222 ........SO Over But not over- of excess over-Over- But not over- of excess over- $71 S0.00 plus 10% - $71 $222 -$588 .. $0.00 plus 10% - $222 $254 -$815. S18.30 plus 12% -$254 $588 -$1,711 .. $36.60 plus 12% - $588 $815 -$1,658 .. $85.62 plus 22% -$815 $1,711 -$3,395 .. $171.36 plus 22% -$1.711 $1,658 -$3,100 . $271.08 plus 24% -$1,658 $3,395 -$6,280 .. $541.84 plus 24% - $3,395 $3,100 -$3,917 .. $617.16 plus 32% -$3,100 $6,280 -$7,914 . . $1,234.24 plus 32% -$6,280 $3,917 -$9,687 .. $878.60 plus 35% -$3,917 $7,914 -$11,761 .. $1,757.12 plus 35% -$7,914 $9.687. $2.898.10 plus 37% -$9.687 $11.761.... $3,103.57 plus 37% ---$11.761 TABLE 2-BIWEEKLY Payroll Period $142 (a) SINGLE person (including head of household)- (b) MARRIED person If the amount of wages If the amount of wages (after subtracting The amount of income tax (after subtracting The amount of income tax withholding allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $142....... $0 Not over $444 Over But not over- of excess over- Over- But not over- of excess over- $142 -$509 $0.00 plus 10% $444 - $1,177 .. $0.00 plus 10% -$444 $509 -$1.631. $36.70 plus 12% -$509 $1,177 -$3,421 ... $73.30 plus 12% -$1,177 $1,631 -$3,315 $171.34 plus 22% --$1,631 $3,421 -$6,790, $342.58 plus 22% - $3,421 $3,315 -$6,200 $541.82 plus 24% -$3,315 $6,790 -$12,560 $1,083.76 plus 24% -$6,790 $6,200 -$7,835 $1.234.22 plus 32% -$6,200 $12,560 - $15,829. $2,468.56 plus 32% -$12,560 $7,835 -$19,373. $1,757.42 plus 35% -$7,835 $15.829 -$23,521 $3,514.64 plus 35% -$15,829 $19.373 $5,795.72 plus 37% -$19,373 - $23,521 $23,521 $6,206.84 plus 37% TABLE 3-SEMIMONTHLY Payroll Period TABLE OF ALLOWANCE VALUES Payroll Period Weekly ... Biweekly. Semimonthly Monthly Quarterly..... Semiannually... Annually... Daily or miscellaneous (each day of the payroll period)...... .... One Withholding Allowance $ 79.80 159.60 172.90 345.80 1,037.50 2,075.00 4,150.00 16.00 TAX TABLE Percentage Method Tables for Income Tax Withholding (For Wages Paid in 2018) TABLE 1-WEEKLY Payroll Period (a) SINGLE person (including head of household) (b) MARRIED person- If the amount of wages If the amount of wages (after subtracting The amount of income tax (after subtracting The amount of income tax withholding allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $71 Not over $222 ........SO Over But not over- of excess over-Over- But not over- of excess over- $71 S0.00 plus 10% - $71 $222 -$588 .. $0.00 plus 10% - $222 $254 -$815. S18.30 plus 12% -$254 $588 -$1,711 .. $36.60 plus 12% - $588 $815 -$1,658 .. $85.62 plus 22% -$815 $1,711 -$3,395 .. $171.36 plus 22% -$1.711 $1,658 -$3,100 . $271.08 plus 24% -$1,658 $3,395 -$6,280 .. $541.84 plus 24% - $3,395 $3,100 -$3,917 .. $617.16 plus 32% -$3,100 $6,280 -$7,914 . . $1,234.24 plus 32% -$6,280 $3,917 -$9,687 .. $878.60 plus 35% -$3,917 $7,914 -$11,761 .. $1,757.12 plus 35% -$7,914 $9.687. $2.898.10 plus 37% -$9.687 $11.761.... $3,103.57 plus 37% ---$11.761 TABLE 2-BIWEEKLY Payroll Period $142 (a) SINGLE person (including head of household)- (b) MARRIED person If the amount of wages If the amount of wages (after subtracting The amount of income tax (after subtracting The amount of income tax withholding allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $142....... $0 Not over $444 Over But not over- of excess over- Over- But not over- of excess over- $142 -$509 $0.00 plus 10% $444 - $1,177 .. $0.00 plus 10% -$444 $509 -$1.631. $36.70 plus 12% -$509 $1,177 -$3,421 ... $73.30 plus 12% -$1,177 $1,631 -$3,315 $171.34 plus 22% --$1,631 $3,421 -$6,790, $342.58 plus 22% - $3,421 $3,315 -$6,200 $541.82 plus 24% -$3,315 $6,790 -$12,560 $1,083.76 plus 24% -$6,790 $6,200 -$7,835 $1.234.22 plus 32% -$6,200 $12,560 - $15,829. $2,468.56 plus 32% -$12,560 $7,835 -$19,373. $1,757.42 plus 35% -$7,835 $15.829 -$23,521 $3,514.64 plus 35% -$15,829 $19.373 $5,795.72 plus 37% -$19,373 - $23,521 $23,521 $6,206.84 plus 37% TABLE 3-SEMIMONTHLY Payroll Period TABLE OF ALLOWANCE VALUES Payroll Period Weekly ... Biweekly. Semimonthly Monthly Quarterly..... Semiannually... Annually... Daily or miscellaneous (each day of the payroll period)...... .... One Withholding Allowance $ 79.80 159.60 172.90 345.80 1,037.50 2,075.00 4,150.00 16.00