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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
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 that each has submitted a pre-2020 Form W-4. Then calculate both the state income tax withholding (assuming a state tax rate of 5.0% of taxable pay, with taxable pay being the same for federal and state income tax withholding), and the local income tax withholding. Refer to the Federal Tax Tables in Appendix A of your textbook. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. Publication 15-T (2020) 1: Frank Claiborne (married; 5 federal withholding allowances) earned weekly gross pay of $2,050. For each period, he makes a 401(k) retirement plan contribution of 12% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 1.5% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents, and 1.4% of an employee's taxable pay on nonresidents. Federal income tax withholding = $ State income tax withholding = $ Local income tax withholding = $ 2: Douglass Lyons (married; 2 federal withholding allowances) earned weekly gross pay of $3,825. He participates in a flexible spending account, to which he contributes $275 during the period. The city in which he lives and works levies a tax of 3.2% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents and 0.80% of an employee's taxable pay on nonresidents. Federal income tax withholding = $ State income tax withholding = $ Local income tax withholding = $ 3: David Maloney (married; 7 federal withholding allowances) earned weekly gross pay of $1,300. 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 1.9% 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 = $ 4: Antonio Garcia (single; 3 federal withholding allowances) earned weekly gross pay of $2,940. He participates in a cafeteria plan, to which he pays $250 during the period. The city in which he works levies a tax of $5.00/week on employees who work within city limits. Federal income tax withholding = $ State income tax withholding = $ Local income tax withholding = $
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