Question
Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of each
Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee. Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent.
As we go to press, the federal income tax rates for 2021 are being determined by budget talks in Washington and not available for publication. For this edition, the 2020 federal income tax tables for Manual Systems with Forms W-4 from 2020 or later with Standard Withholding and 2020 FICA rates have been used.
Click here to access the Percentage Method Tables.
Click here to access the Wage-Bracket Method Tables.
Amount to Be Withheld | ||||||
Employee | Filing Status | No. of Withholding Allowances | Gross Wage or Salary | Percentage Method | Wage-Bracket Method | |
Lennon, A. | S | N/A | $675 | weekly | $fill in the blank 1 | $fill in the blank 2 |
Starr, P. | S | N/A | 1,365 | weekly | fill in the blank 3 | fill in the blank 4 |
McNeil, S. | MFJ | N/A | 1,775 | biweekly | fill in the blank 5 | fill in the blank 6 |
Harrison, W. | MFJ | N/A | 2,480 | semimonthly | fill in the blank 7 | fill in the blank 8 |
Smythe, M. | MFJ | N/A | 5,380 | monthly | fill in the blank 9 | fill in the blank 10 |
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