Question
Q1a. Thomas Fortuna (married; 4 federal withholding allowances) earned weekly gross pay of $765. For each period, he makes a 401(k) retirement plan contribution of
Q1a. Thomas Fortuna (married; 4 federal withholding allowances) earned weekly gross pay of $765. For each period, he makes a 401(k) retirement plan contribution of 11% of gross pay. Using wage-bracket method: Federal income tax withholding = $_________________
Q1b. Barbara Houlihan (single; 1 federal withholding allowance) earned daily gross pay of $310. For each period, she makes a 401(k) contribution of 11.5% of gross pay. Using wage-bracket method: Federal income tax withholding = $ ______________ Using percentage method: Federal income tax withholding = $ _____________
Q1c. Marcus Xavier (married; 5 federal withholding allowances) earned monthly gross pay of $3,670. He participates in a flexible spending account, to which he contributes $215 during the period. Using wage-bracket method: Federal income tax withholding = $_________________
* ** *NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. - - For each employee listed, use both the wage-bracket method and the percentage method to calculate federal income tax withholding.Refer to Appendix A, 2018 Federal Tax Tables in your textbook.
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