Problem 9-4 Withholding Methods (LO 9.1)

Beckett Rice submitted a new Form W-4 for 2022 as presented below. If Beckett is paid gross wages of $3,000 for the semimonthly period, determine Becketts income tax withholding using the percentage method and the wage bracket method.

Round your answers to two decimal places.

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Form W-4

Department of the Treasury Internal Revenue Service Employee's Withholding Certificate Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay. Give Form W-4 to your employer. Your withholding is subject to review by the IRS. OMB No. 1545-0074

2022 Step 1: Enter Personal Information (a) First name and middle initial Beckett Last name Rice (b) Your social security number 344-56-7890 Address 6010 Middle Fiskville Road Does your name match the name on your social security card? If not, to ensure you get credit for your earnings, contact SSA at 800-772-1213 or go to www.ssa.gov . City or town, state, and ZIP code Austin, TX 78752 (c) Single or Married filing separately Married filing jointly or Qualifying widow(er) Step 2: Multiple Jobs or Spouse Works Complete this step if you (1) hold more than one job at a time, or (2) are married filing jointly and your spouse also works. The correct amount of withholding depends on income earned from all of these jobs. Do only one of the following. (a) Use the estimator at www.irs.gov/W4App for most accurate withholding for this step (and Steps 34); or (b) Use the Multiple Jobs Worksheet on page 3 and enter the result in Step 4(c) below for roughly accurate withholding; or (c) If there are only two jobs total, you may check this box. Do the same on Form W-4 for the other job. This option is accurate for jobs with similar pay; otherwise, more tax than necessary may be withheld . . . . . . . . . . . . . . . . . . . . Step 3: Claim Dependents If your total income will be $200,000 or less ($400,000 or less if married filing jointly): Multiply the number of qualifying children under age 17 by $2,000 $ 4,000 Multiply the number of other dependents by $500 . . . . . . . . . . . . $ Add the amounts above and enter the total here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 $ 4,000 Step 4 (optional): Other Adjustments Other income (not from jobs). If you want tax withheld for other income you expect this year that won't have withholding, enter the amount of other income here. This may include interest, dividends, and retirement income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4(a) $ 5,600 Deductions. If you expect to claim deductions other than the standard deduction and want to reduce your withholding, use the Deductions Worksheet on page 3 and enter the result here 4(b) $ 3,000 Extra withholding. Enter any additional tax you want withheld each pay period . . . . . . . . 4(c) $ 0

a. Percentage method of withholding: fill in the blank 1 of 1$

b. Wage bracket method of withholding: fill in the blank 1 of 1$