PSC $3-9$ Calculate Federal $($Percentage Method, Pre$-2020$ Form W$-4),$ State, and Local Income Tax Withholding

For each employee listed, use the percentage method to calculate federal income tax withholding, assuming each has submitted a pre$-2020$ Form W$-4.$ Then calculate both the state income tax withholding $($assuming a state tax rate of $5\%$ of taxable pay, with taxable pay being the same for federal and state income tax withholding$)$ and the local income tax withholding. Refer to Publication $15-$T$.$

NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

Frank Claiborne $($married; $5$ federal withholding allowances$)$ earned weekly gross pay of $$2,050.$ For each period, he makes a $)$ retirement plan contribution of $12\%$ of gross pay. The city in which he works $($he lives elsewhere$)$ levies a tax of $1\mathrm{.}5\%$ of an employee's taxable pay $($which is the same for federal and local income tax withholding$)$ on residents, and $1\mathrm{.}4\%$ of an employee's taxable pay on nonresidents.

Federal income tax withholding $=$ :

State income tax withholding $=$$

Local income tax withholding $=$$

Douglass Lyons $($married; $2$ federal withholding allowances$)$ earned weekly gross pay of $$3,825.$ He participates in a flexible spending account, to which he contributed $$275$ during the period. The city in which he lives and works levies a tax of $3\mathrm{.}2\%$ of an employee's taxable pay which is the same for federal and local income tax with holding$)$ on residents and $0\mathrm{.}80\%$ of an employee's taxable pay on nonresidents.

Federal income tax withholding $=$$ $q,$

State income tax withholding $=$$ $q,$

Local income tax withholding $=$$ $q,$

$q,3$: David Maloney $($married; $7$ federal withholding allowances$)$ earned weekly gross pay of $$1,200.$ He does not request that any voluntary deductions be made from his gross pay. The city in which he lives and works levies a tax of $1\mathrm{.}9\%$ of an employee's taxable pay $($which is the same for federal and local income tax withholding$)$ on both residents and nonresidents.

Federal income tax withholding $=$

State income tax withholding $=$$

Local income tax withholding $=$$

$$

$$

$q,4$: Antonio Garcia $($single; $3$ federal withholding allowances$)$ earned weekly gross pay of $$2,940.$ He participates in a cafeteria plan, to which he paid $$250$ during the period. The city in which he works levies a tax of $$\frac{5\mathrm{.}00}{?}$ week on employees who work within city limits$.$

Federal income tax withholding $=?$ State income tax withholding $=$$ $$ Local income tax withholding $=$$

Search