Rhonda Brennan found her first job after graduating from college through the classifieds of the Miami Herald. She was delighted when the offer came through at $15.10 per hour. She completed her W-4 stating that she is married with a child and claims an allowance of 3. Her company will pay her biweekly for 80 hours (assume a tax rate of 6.2% on $118,500 for Social Security and 1.45% for Medicare).
TABLE 9.1 Payroll Period One Withholding Allowance Percentage method income tax withholding allowances $ 76.90 153.80 166.70 333.30 1,000.00 2,000.00 4,000.00 Weekly Biweekly Monthly Quarterly Semiannually Annually Daily or miscellaneous (each day of the payroll period) . . 15.40 TABLE Percentage method income tax withholding schedules Percentage Method Tables for Income Tax Withholding TABLE 1-WEEKLY Payroll Period (a) SINGLE person (including head of household If the amount of wages (after subtracting withholding allowances) is: to withhold is: Not over $44 Over- (b) MARRIED person- If the amount of wages The amount of income tax withholding allowances) is: Not over $165 The amount of income tax to withhold is: SO SO of excess over-Over-But not over_ of excess over-_ $44 $0.00 plus 10% $35.50 plus 15% -$764 , , $17.80 plus 15% -$222| -$764| $520-$1,606 $1,606 . . $764-$1,789 $1,789 --$3,685 $99.10 plus 25% $355.35 plus 28% $886.23 plus 33% $2,296.32 plus 35% $2,307.52 plus 39.6% --$3,073 .. $198.40 plus 25% -$4,597 .. S565.15 plus 28% --$8,079 . . $991 .87 plus 33% --$9,105.. .. $3,073 -$4,597 . . -$3,685 | -$7,958| $4,597 $8,079 $7,958 --$7,990 . . $2,140.93 plus 35% $2,500.03 plus 39.6% -$8,079 TABLE 2-BIWEEKLY Payroll Period (a) SINGLE person (including head of household)- If the amount of wages (after subtracting withholding allowances) is: to withhold is: Not over $88 ver- (b) MARRIED person- If the amount of wages The amount of income tax withholding allowances) is: Not over $331 The amount of income tax to withhold is: S0 S0 of excess over-Over- But not over-_ $331 --$1,040.. $1,040-$3,212.. $3,212-$6,146.. $6,146 _$9,194.. of excess over- $0.00 plus 10% $35.50 plus 15% $198.40 plus 25% $710.90 plus 28% $1,772.10 plus 33% $4,592.28 plus 35% $4,615.38 plus 39.6% $88 But not -$443 --$1,529 --$3,579 --$7,369 --$15,915 --$15,981 -588| -5443| -$1,529| -$3,579| S0.00 plus 10% $70.90 plus 15% $396.70 plus 25% $1,130.20 plus 28% , $443 $1,529 $3,579 $7,369 $15,915 . . -$3,212 -$9,194 . . . . 7,369$%9,194 $16,158 $1,983.64 plus 33% . , -$15,915 $16,158-518,210.. $4,281.76 plus 35% $4,999.96 plus 39.6% . . $15,981 $18,210 TABLE 3 SEMIMONTHLY Payroll Period (a) SINGLE person (including head of household)- If the amount of wages (after subtracting withholding allowances) is: to withhold is (b) MARRIED person- If the amount of wages (after subtracting withholding allowances) is: Not over $358 The amount of income tax The amount of income tax to withhold is: S0 S0 But not over- of excess over_ $480-$1,656 $1.656-$3,877 $3,877 --$7,983 $7,983-$ 17,242 $17,242-$17,313 -$96| -$480| -$1,656 | -$3,877| -$7,983| --$17,242| $358-$1,127 . .SO.00 plus 10% $1,127-$3,479.. $76.90 plus 15% $3,479 --$6,658 , . $429.70 plus 25% $6,658 --$9,960 . . $1,224.45 plus 28% $9,960-$ 17,504 $38.40 plus 15% $214.80 plus 25% $770.05 plus 28% .. -$3,479 -$6 .. . . 1,919.73 plus 33% $4,975.20 plus 35% 149.01 plus 33% $4,638.53 plus 35% . . $17,504-619,727.. . . TABLE 4-MONTHLY Payroll Period (a) SINGLE person (including head of household)- If the amount of wages (b) MARRIED person If the amount of wages (after subtracting withholding allowances) is: Not over $717 withholding allowances) is: Not over $192 Over- The amount of income tax to withhold is The amount of income tax to withhold is: $O of excess over-Over-But not over-_ $717-$2,254 . . $2,254-$6,958. . $6,958-$13,317 .. $13,317-519,921.. $19,921 --$35,008., $35,008-$39,454 . , of excess over- $717 -$2,254 -$960 $0.00 plus 10% $76.80 plus 15% $429.75 plus 25% $1,540.00 plus 28% $3,839.64 plus 33% $9,949.92 plus 35% $9,999.62 plus 39.6% -$192| -$960| $3,313| -67,754| --$15,967| -$4,483 | $0.00 plus 10% $153.70 plus 15% $859.30 plus 25% $2,449.05 plus 28% $4,298.17 plus 33% $9,276.88 plus 35% , $960-$3.313 .. $3,313 --$7,754 . . $7,754--$15,967 . . $15,967-$34,483 . . $34,483-$34,625 , , $6 -$13,317 -$19,921 . . $10,832.98 plus 39.6% -$39,454
