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Posted on Sep 08, 2024

Word Problem 9-23 [LU 9-2 (1)] Calculate Social Security taxes, Medicare taxes and FIT for Jordon Barrett. He earns a monthly salary of $13,200. He

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Word Problem 9-23 [LU 9-2 (1)] Calculate Social Security taxes, Medicare taxes and FIT for Jordon Barrett. He earns a monthly salary of $13,200. He is single and claims 1 deduction. Before this payroll, Barrett's cumulative earnings were $112,700. (Social Security maximum is 6.2% on $118,500 and Medicare is 1.45%). Calculate FIT by the percentage method. (Use Table 9.1 and Table 9.2) (Round your answer to 2 decimal places.) FIT Social Security taxes Medicare taxes 191.40 TABLE 9.2 Percentage method income tax withholding schedules Percentage Method Tables for Income Tax Withholding TABLE 1-WEEKLY Payroll Period SO (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 $44...... .. SO Not over $165 ...... Over But not over- of excess over-Over- But not over- of excess over- $44 -$222 .. $0.00 plus 10% -$44 $165 - $520 .. $0.00 plus 10% $222 -$764 . . $17.80 plus 15% -$222 $520 - $1,606 .. $35.50 plus 15% -$520 $764 -$1,789 .. $99.10 plus 25% -5764 $1,606 -$3,073 . . $198.40 plus 25% -$1,606 $1.789 $3,685 .. $355.35 plus 28% -$1,789 $3,073 -$4,597 .. $565.15 plus 28% -$3,073 $3,685 $7.958 .. $886.23 plus 33% -$3,685 $4,597 -$8,079 .. $991.87 plus 33% -$4,597 $7.958 $7,990 $2,296,32 plus 35% -$7.958 $8,079 -$9,105.. $2,140.93 plus 35% -$8,079 $7.990 ..$2,307.52 plus 39.6% $7.990 $9,105 ..$2.500.03 plus 39.6% -$9,105 TABLE 2-BIWEEKLY Payroll Period -$165 (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 $88 ........ so Not over $331 ....... Over- But not over- of excess over-Over- But not over- of excess over- $88 $443 .. $0.00 plus 10% -$88 $331 -$1,040.. $0.00 plus 10% -$331 $443 -51,529 .. $35.50 plus 15% --$443 $1,040 -$3,212 .. $70.90 plus 15% -$1,040 $1,529 -$3,579 . . $198.40 plus 25% - $1,529 $3,212 $6,146 .. $396.70 plus 25% -$3,212 $3,579 - $7,369.. $710.90 plus 28% -$3,579 $6.146 $9,194.. $1,130.20 plus 28% -S6,146 $7,369 -$15,915 .. $1.772.10 plus 33% -57,369 S9,194 -$16,158. $1,983.64 plus 33% -$9,194 $15,915 -$15,981 .. $4.592.28 plus 35% -$15,915 $16,158 -$18,210.. $4,281.76 plus 35% $16.158 $15.981.. $4,615.38 plus 39.6% -$15.981 $18.210. .. ......$4,999.96 plus 39.6% -$18,210 TABLE 3-SEMIMONTHLY 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 $96.... .. SO Not over $358 .... . SO Over But not over- of excess over-Over- But not over- of excess over- $96 $480 .. $0.00 plus 10% -$96 $358 $1,127 .. $0.00 plus 10% -$358 $480 $1,656 .. $38.40 plus 15% -S480 $1,127 $3,479 .. $76.90 plus 15% -$1,127 $1,656 -$3,877 .. $214.80 plus 25% - $1,656 $3,479 -$6,658 .. $429.70 plus 25% -$3,479 $3,877 -$7,983 .. $770.05 plus 28% -$3,877 $6,658 -$9,960.. $1,224.45 plus 28% -$6,658 $7.983 -$17.242 $1.919.73 plus 33% -$7.983 59,900 $17,304.. S2,149.01 plus 33% -$9.960 $17.242 -$17,313 .. $4.975 20 plus 35% -$17.242 $17.504 -$19,727 .. $4.638.53 plus 35% _$17,504 $17,313 . . . . . . . . . . . . $5.000.05 plus 39.6% -$17,313 $19.727 . . . . . . . . . . . . $5,416.58 plus 39.6% $19.727 TABLE 4-MONTHLY 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 $192. 50 Not over $717. Over But not over- of excess over-Over- But not over- of excess over- $192 $960.. $0.00 plus 10% -$192 $717 $2,254 .. $0.00 plus 10% -$717 $960 -$3,313 .. $76.80 plus 15% -S960 $2,254 - $6,958 . . $153.70 plus 15% -$2,254 $3,313 -$7,754 .. $429.75 plus 25% -$3,313 $6,958 -$13,317 .. $859.30 plus 25% -$6,958 $7,754 -$15,967 .. $1.540.00 plus 28% -$7,754 $13,317 -$19,921 .. $2,449.05 plus 28% -$13,317 $15.967 -$34,483 .. $3.839.64 plus 33% -$15.967 $19.921 -$35,008 .. $4,298.17 plus 33% -$19,921 $34,483 -$34,625 .. $9.949.92 plus 35% -$34,483 $35,008 -$39,454 .. $9,276.88 plus 35% -$35,008 $34,625 ............ $9.999.62 plus 39.6% -$34,625 $39,454 ............$10,832.98 plus 39.6% -$39.454 TABLE 9.1 Payroll Period Percentage method income tax withholding allowances 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