Through the classifieds of the Miami Herald Rhonda Brennan found her first job after graduating from college. She was delighted when the offer came through at $14.50 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).
Calculate her take-home pay for her first check.
Payroll Period Weekly. Biweekly . Semimonthly Monthly Quarterly. . Semiannually Annually Daily or miscellaneous (each day of the payroll period) One Withholding Allowance $76.90 153.80 166.70 333.30 1,000.00 2,000.00 4,000.00 15.40 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: Not over $44 The amount of income tax to withhold is: The amount of income tax to withhold is: $0 $0 Over- But not over- of excess over-Over- (b) MARRIED person- If the amount of wages (after subtracting withholding allowances) is: Not over $165... But not over- -$520 -$1,606 -$3,073 -$4,597 -$8,079 -$9,105 $44 -$222 $0.00 plus 10% $222 -$764 $0.00 plus 10% $35.50 plus 15% $198.40 plus 25% $764 -$1,789 $1,789 -$3,685 $3,685 -$7,958 $7,958 -$7,990 $7,990 $17.80 plus 15% $99.10 plus 25% $355.35 plus 28% $886.23 plus 33% $2,296.32 plus 35% $2,307.52 plus 39.6% -$44 $165 -$222 $520 -$764 $1,606 -$1,789 $3,073 -$3,685 $4,597 -$7,958 $8,079 -$7,990 $9,105 $565.15 plus 28% $991.87 plus 33% $2,140.93 plus 35% $2,500.03 plus 39.6% TABLE 2-BIWEEKLY Payroll Period (a) SINGLE person (including head of household)- (b) MARRIED person- If the amount of wages (after subtracting withholding allowances) is: Not over $88 The amount of income tax to withhold is: If the amount of wages (after subtracting withholding allowances) is: Not over $331 The amount of income tax to withhold is: ..... $0 $0 Over- But not over- -$443 -$1,529 -$3,579 $0.00 plus 10% $35.50 plus 15% of excess over-Over- But not over- -$88 $331 -$1,040 -$443 $1,040 -$3,212 $0.00 plus 10% $70.90 plus 15% $396.70 plus 25% $88 $443 $1,529 $3,579 -$7,369 $7,369 -$15,915. $15,915 -$15,981 $15,981 $198.40 plus 25% $710.90 plus 28% $1,772.10 plus 33% -$1,529 $3,212 -$3,579 $6,146 -$6,146 -$9,194 -$7,369 $9,194 -$16,158 $4.592.28 plus 35% $4,615.38 plus 39.6% -$15,915 $16,158 -$18,210 -$15,981 $18,210 $1,130.20 plus 28% $1,983.64 plus 33% $4,281.76 plus 35% $4,999.96 plus 39.6% (a) SINGLE person (including head of household)- If the amount of wages (after subtracting withholding allowances) is: The amount of income tax to withhold is: The amount of income tax to withhold is: $0 Not over $96 ... $0 Over- But not over- $96 -$480 $0.00 plus 10% $38.40 plus 15% $480 -$1,656 $1,656 $3,877 -$3,877. $214.80 plus 25% -$7,983 $770.05 plus 28% $7,983 -$17,242 $1,919.73 plus 33% $17,242 -$17,313 $4.975.20 plus 35% $17,313 $5,000.05 plus 39.6% (a) SINGLE person (including head of household)- If the amount of wages (after subtracting withholding allowances) is: Not over $192 The amount of income tax to withhold is: 50 Over- But not over- $192 $960 $3,313 -$960.. -$3,313 -$7,754 $0.00 plus 10% $76.80 plus 15% $429.75 plus 25% $1,540.00 plus 28% $7,754 -$15,967 $15,967 -$34,483 $3,839.64 plus 33% $34,483 -$34,625 $9,949.92 plus 35% $34,625 $9,999.62 plus 39.6% TABLE 3-SEMIMONTHLY Payroll Period (b) MARRIED person- of excess over-Over- -$96 $358 -$480 $1,127 -$1,656 $3,479 -$3,877 $6,658 If the amount of wages (after subtracting withholding allowances) is: Not over $358 .... But not over- -$1,127.. $0.00 plus 10% -$3,479 $76.90 plus 15% -$6,658 $429.70 plus 25% -$9,960 $1,224.45 plus 28% $2,149.01 plus 33% $4,638.53 plus 35% $5,416.58 plus 39.6% The amount of income tax to withhold is: $0 But not over- -$2,254 $0.00 plus 10% -$6,958 $153.70 plus 15% -$13,317.. $859.30 plus 25% -$19,921 -$35,008 $2,449.05 plus 28% $4,298.17 plus 33% $9,276.88 plus 35% $10,832.98 plus 39.6% -$7,983 $9,960 -$17,504 -$17,242 $17,504 -$19,727 -$17,313 $19,727 Payroll Period (b) MARRIED person- If the amount of wages (after subtracting withholding allowances) is: Not over $717 of excess over- -$165 -$520 -$1,606 -$3,073 -$4,597 -$8,079 -$9,105 of excess over- -$331 -$1,040 -$3,212 -$6,146 -$9,194 -$16,158 -$18,210 of excess over- -$358 -$1,127 -$3,479 -$6,658 -$9,960 -$17,504 -$19,727 of excess over- -$717 -$2,254 -$6,958 -$13,317 -$19,921 -$35,008 -$39,454 TABLE 4-MONTHLY of excess over-Over- -$192 $717 -$960 $2,254 -$3,313 $6,958 -$7,754 $13,317 -$15,967 $19,921 -$34,483 $35,008 -$39,454 -$34,625 $39,454
