You pay Mei-Ling a base salary on the first of each month. She files single and claims one withholding allowance. Her pay is $2,000. Using the wage bracket method, how much should you withhold? If Mei-Ling receives a bonus of $1,000, what would the withholding amount change to when combining the totals? What would the withholding amount be on the bonus if you choose to use the flat rate method?

Based on the information above, please complete W-2 forms for each of the four employees in the previous questions. For example, in Problem 1 you calculated the taxes for Sally on $800. The gross wages for the W-2 will be $800. You must calculate Social Security and Medicare taxes. You can leave the state withholding information blank. Please include the bonus amounts from Problems 3 and 4. You must use the correct withholding total when combining these amounts for your W-2 forms. For Mei-Ling, do not use the flat rate method answer for your W-2 calculations. Download a fillable W-2 form.