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Kenneth, who completed the pre-2020 W-4, (married; three federal withholding allowances) earned weekly gross pay of $1,125. For each period, he makes a 401(k) retirement
Kenneth, who completed the pre-2020 W-4, (married; three federal withholding allowances) earned weekly gross pay of $1,125. For each period, he makes a 401(k) retirement plan contribution of 5% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 1.4% of an employee's taxable pay on residents and 2.25% of an employee's taxable pay on nonresidents. Taxable pay is the same for federal, state, and local tax withholding. a) Calculate Kenneth's federal income tax withheld using the 2021 pre-2020 W-4 wage-bracket method (Appendix A in the textbook). b) Calculate Kenneth's federal income tax withheld using the 2021 pre-2020 W-4 percentage method (Appendix A in the textbook). c) Calculate Kenneth's state income tax withheld. The state tax rate is 5%. d) Calculate Kenneth's local income tax withheld
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