The payroll account for Presto Manufacturing Cupcakery has been assigned to you, and you are to complete the payroll for Sam, one of their employees. Sam is married, claims 2 withholding allowances, and earns $1,650 semimonthly. In addition to Federal Income taxes, Social Security, and Medicare, he pays 5.7% in NYS income tax (based on gross income), $157.50 for a family health plan per paycheck, $13.50 for life insurance, contributes 8% of his earnings to a 401K, and has his car payment of $110 auto deducted.
Presto Manufacturing pays unemployment at a rate of 3.4%, Federal Unemployment at a rate of 0.8%, and matches their employee's Social Security and Medicare taxes.
- Using your notes and the tax tables (EX 9-1 and 9-2) in the PowerPoint and eBook, calculate Sams take-home pay. Show and label your calculations for each deduction in the table below.
- Using the given case information, calculate the amount that Presto Manufacturing must pay for the payroll taxes for Sam in the table on page
- Employee Take-Home Pay Chart
|
| Tax or Deduction | Calculation | Tax or Deduction Amount |
| Federal Income Tax | | |
| Social Security Tax (6.2%) | | |
| Medicare Tax (1.45%) | | |
| NYS Income Tax | | |
| Health Plan | | |
| Life Insurance | | |
| 401K | | |
| Car Payment | | |
| | Total Tax and Deductions: | |
| | Sams Take Home Pay: | |
| 2. Employer Payroll Tax Chart |
| Tax | Calculation | Tax Amount |
| NYS Employment Tax (3.4%) | | |
| Federal Unemployment Tax (0.8%) | | |
| Social Security (matched) | | |
| Medicare (matched) | | |
| | Prestos Total Payroll Taxes for Sam |
+ LE Percentage Method Tables for Income Tax Withholding (For Wages Paid in 20XX) TABLE 1WEEKLY Payroll Period (a) SINGLE person (including head of household)- (b) MARRIED person- If the amount of wages If the amount of wages (after subtracting The amount of income tax (after subtracting The amount of income tax withholding allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $71.......... ...$0 Not over $222 ............. .$0 Over- But not over- of excess over-Over- But not over- of excess over- $71 -$254 $0.00 plus 10% -$71 $222 -$588 $0.00 plus 10% -$222 $254 -$815 $18.30 plus 12% -$254 $588 -$1,711 .$36.60 plus 12% -5588 $815 -$1,658 ....$85.62 plus 22% -5815 $1,711 -$3,395 $171.36 plus 22% -$1,711 $1,658 -$3,100 $271.08 plus 24% -$1,658 $3,395 - $6,280 $541.84 plus 24% -$3,395 $3,100 -$3,917 $617.16 plus 32% -$3,100 $6,280 -$7,914 $1,234.24 plus 32% -$6,280 $3,917 -$9,687 $878.60 plus 35% -$3,917 $7,914 -$11,761 $1,757.12 plus 35% - $7,914 $9,687 $2,898.10 plus 37% -$9,687 $11,761 .$3,103.57 plus 37% -$11,761 TABLE 2-BIWEEKLY Payroll Period (a) SINGLE person (including head of household) (b) MARRIED person- If the amount of wages If the amount of wages (after subtracting The amount of income tax (after subtracting The amount of income tax withholding allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $142........... ...$0 Not over $444................. ...$0 Over- But not over- of excess over-Over- But not over- of excess over- $142 -$509 ...$0.00 plus 10% -$142 $444 -$1,177 $0.00 plus 10% -$444 $509 $1,631 $36.70 plus 12% -$509 $1,177 -$3,421 $73.30 plus 12% -$1,177 $1,631 -$3,315 $171.34 plus 22% $1,631 $3,421 - $6,790 $342.58 plus 22% - $3,421 $3,315 -$6,200 $541.82 plus 24% -$3,315 $6,790 -$12,560 .$1,083.76 plus 24% - $6,790 $6,200 $7,835 $1,234.22 plus 32% $6,200 $12,560 -$15,829 $2,468.56 plus 32% -$12,560 $7,835 $19,373 $1,757.42 plus 35% $7,835 $15,829 -$23,521 $3,514.64 plus 35% -$15,829 $19,373 $5,795.72 plus 37% $19,373 $23,521 ..$6,206.84 plus 37% -$23,521 ER BER WHERE --- HERRER BER TABLE 3SEMIMONTHLY Payroll Period (a) SINGLE person (including head of household) (b) MARRIED person- If the amount of wages (after If the amount of wages subtracting withholding The amount of income tax (after subtracting The amount of income tax allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $154. .$0 Not over $481............ ..$0 Over- But not over- of excess over-Over- But not over- of excess over- $154 -$551 ...$0.00 plus 10% $154 $481 $1,275 .. $0.00 plus 10% -$481 $551 -$1,767 $39.70 plus 12% -$551 $1,275 -$3,706 .. $79.40 plus 12% -$1,275 $1,767 -$3,592 $185.62 plus 22% $1,767 $3,706 $7,356 .. $371.12 plus 22% -$3,706 $3,592 -$6,717 $587.12 plus 24% -$3,592 $7,356 513,606 .. $1,174.12 plus 24% -$7,356 $6,717 -$8,488 $1,337.12 plus 32% -$6,717 $13,606 -$17,148 .. $2,674.12 plus 32% -$13,606 $8,488 -$20,988 .$1,903.84 plus 35% -$8,488 $17,148 $325,481 .. $3,807.11 plus 35% -$17,148 $20,988. $6,278.84 plus 37% -$20,988 $25,481 ..$6,724.11 plus 37% -$25,481 TABLE 4MONTHLY Payroll Period (a) SINGLE person (including head of household) (b) MARRIED person- If the amount of wages If the amount of wages (after subtracting The amount of income tax (after subtracting The amount of income tax withholding allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $308 .................$0 Not over $963...................$0 Over- But not over- of excess over-Over- But not over- of excess over- $308 $1,102 ..$0.00 plus 10% -$308 $963 -$2,550 $0.00 plus 10% -$963 $1,102 -$3,533 $79.40 plus 12% -$1,102 $2,550 -$7,413 $158.70 plus 12% -$2,550 $3,533 -$7,183 $371.12 plus 22% -$3,533 $7,413 -$14,713 $742.26 plus 22% $7,413 $7,183 -$13,433 $1,174.12 plus 24% -$7,183 $14,713 -$27,213 $2,348.26 plus 24% -$14,713 $13,433 -$ 16,975 $2,674.12 plus 32% -$13,433 $27,213 -$34,296 $5,345.26 plus 32% -$27,213 $16,975 -$41,975 $3,807.56 plus 35% -$16,975 $34,296 -$50,963 $7,614.82 plus 35% -$34,296 $41,975..... $12,557.56 plus 37% 541,975 $50,963..... $13,448.27 plus 37% $50,963 ... Payroll Period One Withholding Allowance Weekly .. Biweekly Semimonthly Monthly Quarterly Semiannually Annually... Daily or miscellaneous (each day of the payroll period)... $ 79.80 159.60 172.90 345.80 1,037.50 2,075.00 4,150.00 16.00 . + LE Percentage Method Tables for Income Tax Withholding (For Wages Paid in 20XX) TABLE 1WEEKLY Payroll Period (a) SINGLE person (including head of household)- (b) MARRIED person- If the amount of wages If the amount of wages (after subtracting The amount of income tax (after subtracting The amount of income tax withholding allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $71.......... ...$0 Not over $222 ............. .$0 Over- But not over- of excess over-Over- But not over- of excess over- $71 -$254 $0.00 plus 10% -$71 $222 -$588 $0.00 plus 10% -$222 $254 -$815 $18.30 plus 12% -$254 $588 -$1,711 .$36.60 plus 12% -5588 $815 -$1,658 ....$85.62 plus 22% -5815 $1,711 -$3,395 $171.36 plus 22% -$1,711 $1,658 -$3,100 $271.08 plus 24% -$1,658 $3,395 - $6,280 $541.84 plus 24% -$3,395 $3,100 -$3,917 $617.16 plus 32% -$3,100 $6,280 -$7,914 $1,234.24 plus 32% -$6,280 $3,917 -$9,687 $878.60 plus 35% -$3,917 $7,914 -$11,761 $1,757.12 plus 35% - $7,914 $9,687 $2,898.10 plus 37% -$9,687 $11,761 .$3,103.57 plus 37% -$11,761 TABLE 2-BIWEEKLY Payroll Period (a) SINGLE person (including head of household) (b) MARRIED person- If the amount of wages If the amount of wages (after subtracting The amount of income tax (after subtracting The amount of income tax withholding allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $142........... ...$0 Not over $444................. ...$0 Over- But not over- of excess over-Over- But not over- of excess over- $142 -$509 ...$0.00 plus 10% -$142 $444 -$1,177 $0.00 plus 10% -$444 $509 $1,631 $36.70 plus 12% -$509 $1,177 -$3,421 $73.30 plus 12% -$1,177 $1,631 -$3,315 $171.34 plus 22% $1,631 $3,421 - $6,790 $342.58 plus 22% - $3,421 $3,315 -$6,200 $541.82 plus 24% -$3,315 $6,790 -$12,560 .$1,083.76 plus 24% - $6,790 $6,200 $7,835 $1,234.22 plus 32% $6,200 $12,560 -$15,829 $2,468.56 plus 32% -$12,560 $7,835 $19,373 $1,757.42 plus 35% $7,835 $15,829 -$23,521 $3,514.64 plus 35% -$15,829 $19,373 $5,795.72 plus 37% $19,373 $23,521 ..$6,206.84 plus 37% -$23,521 ER BER WHERE --- HERRER BER TABLE 3SEMIMONTHLY Payroll Period (a) SINGLE person (including head of household) (b) MARRIED person- If the amount of wages (after If the amount of wages subtracting withholding The amount of income tax (after subtracting The amount of income tax allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $154. .$0 Not over $481............ ..$0 Over- But not over- of excess over-Over- But not over- of excess over- $154 -$551 ...$0.00 plus 10% $154 $481 $1,275 .. $0.00 plus 10% -$481 $551 -$1,767 $39.70 plus 12% -$551 $1,275 -$3,706 .. $79.40 plus 12% -$1,275 $1,767 -$3,592 $185.62 plus 22% $1,767 $3,706 $7,356 .. $371.12 plus 22% -$3,706 $3,592 -$6,717 $587.12 plus 24% -$3,592 $7,356 513,606 .. $1,174.12 plus 24% -$7,356 $6,717 -$8,488 $1,337.12 plus 32% -$6,717 $13,606 -$17,148 .. $2,674.12 plus 32% -$13,606 $8,488 -$20,988 .$1,903.84 plus 35% -$8,488 $17,148 $325,481 .. $3,807.11 plus 35% -$17,148 $20,988. $6,278.84 plus 37% -$20,988 $25,481 ..$6,724.11 plus 37% -$25,481 TABLE 4MONTHLY Payroll Period (a) SINGLE person (including head of household) (b) MARRIED person- If the amount of wages If the amount of wages (after subtracting The amount of income tax (after subtracting The amount of income tax withholding allowances) is: to withhold is: withholding allowances) is: to withhold is: Not over $308 .................$0 Not over $963...................$0 Over- But not over- of excess over-Over- But not over- of excess over- $308 $1,102 ..$0.00 plus 10% -$308 $963 -$2,550 $0.00 plus 10% -$963 $1,102 -$3,533 $79.40 plus 12% -$1,102 $2,550 -$7,413 $158.70 plus 12% -$2,550 $3,533 -$7,183 $371.12 plus 22% -$3,533 $7,413 -$14,713 $742.26 plus 22% $7,413 $7,183 -$13,433 $1,174.12 plus 24% -$7,183 $14,713 -$27,213 $2,348.26 plus 24% -$14,713 $13,433 -$ 16,975 $2,674.12 plus 32% -$13,433 $27,213 -$34,296 $5,345.26 plus 32% -$27,213 $16,975 -$41,975 $3,807.56 plus 35% -$16,975 $34,296 -$50,963 $7,614.82 plus 35% -$34,296 $41,975..... $12,557.56 plus 37% 541,975 $50,963..... $13,448.27 plus 37% $50,963 ... Payroll Period One Withholding Allowance Weekly .. Biweekly Semimonthly Monthly Quarterly Semiannually Annually... Daily or miscellaneous (each day of the payroll period)... $ 79.80 159.60 172.90 345.80 1,037.50 2,075.00 4,150.00 16.00
