1: Walter Ferrell (married; 4 federal withholding allowances) earned weekly gross pay of $1,020. For each period, he makes a 401(k) retirement plan contribution of 13.5% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 1.25% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents, and 1.05% of an employee's taxable pay on nonresidents. Federal income tax withholding = $ State income tax withholding = $ Local income tax withholding = $

College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 7E
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1:
Walter Ferrell (married; 4 federal withholding allowances) earned weekly gross pay of $1,020. For each period, he makes a 401(k) retirement plan contribution of
13.5% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 1.25% of an employee's taxable pay (which is the same for federal and local
income tax withholding) on residents, and 1.05% of an employee's taxable pay on nonresidents.
Federal income tax withholding = $_
State income tax withholding = $
Local income tax withholding = $
2:
Lucas Sedaris (married; 3 federal withholding allowances) earned weekly gross pay of $2,800. He participates in a flexible spending account, to which he
contributes $150 during the period. The city in which he lives and works levies a tax of 3.1% of an employee's taxable pay (which is the same for federal and
local income tax withholding) on residents and 2.4% of an employee's taxable pay on nonresidents.
Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $
3:
Darrell Roper (married; 6 federal withholding allowances) earned weekly gross pay of $1505. He does not request that any voluntary deductions be made from
his gross pay. The city in which he lives and works levies a tax of 2.65% of an employee's taxable pay (which is the same for federal and local income tax
withholding) on both residents and nonresidents.
Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $
4:
Giuseppe Fortuna (single; 2 federal withholding allowances) earned weekly gross pay of $3,835. He participates in a cafeteria plan, to which he pays $170
during the period. The city in which he works levies a tax of $12/week on employees who work within city limits.
Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $
Transcribed Image Text:1: Walter Ferrell (married; 4 federal withholding allowances) earned weekly gross pay of $1,020. For each period, he makes a 401(k) retirement plan contribution of 13.5% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 1.25% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents, and 1.05% of an employee's taxable pay on nonresidents. Federal income tax withholding = $_ State income tax withholding = $ Local income tax withholding = $ 2: Lucas Sedaris (married; 3 federal withholding allowances) earned weekly gross pay of $2,800. He participates in a flexible spending account, to which he contributes $150 during the period. The city in which he lives and works levies a tax of 3.1% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents and 2.4% of an employee's taxable pay on nonresidents. Federal income tax withholding = $ State income tax withholding = $ Local income tax withholding = $ 3: Darrell Roper (married; 6 federal withholding allowances) earned weekly gross pay of $1505. He does not request that any voluntary deductions be made from his gross pay. The city in which he lives and works levies a tax of 2.65% of an employee's taxable pay (which is the same for federal and local income tax withholding) on both residents and nonresidents. Federal income tax withholding = $ State income tax withholding = $ Local income tax withholding = $ 4: Giuseppe Fortuna (single; 2 federal withholding allowances) earned weekly gross pay of $3,835. He participates in a cafeteria plan, to which he pays $170 during the period. The city in which he works levies a tax of $12/week on employees who work within city limits. Federal income tax withholding = $ State income tax withholding = $ Local income tax withholding = $
2020 Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later
WEEKLY Payroll Perlod
STANDARD Withholding Rate Schedules
(Use these if the box in Step 2 of Form W-4 is NOT checked)
Form W-4, Step 2, Checkbox, Withholding Rate Schedules
(Use these if the box in Step 2 of Form W-4 IS checked)
of the
If the Adjusted Wage
Amount (Ilne 1h) Is:
If the Adjusted Wage
Amount (Ilne 1h) Is:
amount that
the Adjusted
Wage
of the
The
amount that
the Adjusted
Wage
The
tentative
tentative
Plus this
But less
than-
amount to
withhold Is:
But less
amount to
Plus this
percentage- exceeds-
At least-
than-
withhold Is:
At least-
percentage- exceeds-
C
E
B
D
Married Filing Jointly
Married Filing Jointly
$0.00
0%
$238
$428
$0
sO
$0
$477
$0.00
0%
$0
$238
$0.00
10%
$238
$477
$857
$2,020
$3,766
$6,758
$8,452
$12,439
$477
$857
$0.00
10%
$19.00
$1,010
$1,883
$3,379
$4,226
$6,220
$428
12%
$428
$857
$2,020
$3,766
$6,758
$8,452
$12,439
$38.00
12%
$88.84
22%
$1,010
$1,883
$3,379
$4,226
$6,220
$1,010
$1,883
$3,379
$4,226
S6,220
$2,020
$177.56
22%
$280.90
24%
$3,766
$561.68
24%
S639.94
32%
$6,758
$1,279.76
32%
$910.98
35%
$8,452
$1,821.84
35%
$1,608.88
37%
S12,439
$3,217.29
37%
Single or Married Filing Separately
Single or Married Filing Separately
$0.00
$0
$0
$119
$0.00
0%
$0
$0
$238
0%
$214
$0.00
10%
$119
$238
S428
$1,010
$1,883
$3,379
$4,226
$238
$428
$0.00
10%
$119
$428
$19.00
12%
$214
S505
$9.50
12%
$214
$1,010
$1,883
$3,379
$4,226
$10,208
$1,010
$88.84
22%
$505
$942
$44.42
22%
$505
$1,689
$2,113
$5,104
24%
$942
$140.56
24%
$942
$1,883
$3,379
$4,226
$10,208
$280.90
32%
$1,689
$2,113
$5,104
$319.84
$1,689
$2,113
$639.94
32%
$910.98
35%
$455.52
35%
$3,004.68
37%
$10,208
$1,502.37
37%
$5,104
Head of Household
Head of Household
$359
$0.00
0%
$0
$0
$179
$0.00
0%
$0
$359
$630
$1,391
$2,003
$3,499
$4,346
$359
$630
$0.00
10%
$179
$315
$0.00
10%
$179
$630
$315
$696
$13.60
$1,391
$2,003
$3,499
$4,346
$10,328
$27.10
12%
12%
$315
$1,001
$1,750
$696
$59.32
$1,391
$2,003
$3,499
$4,346
$10,328
$118.42
22%
22%
$696
$1,001
$1,750
$2,173
$5,164
$253.06
24%
$126.42
24%
$1,001
$2,173
$5,164
$612.10
32%
$306.18
32%
$1,750
$2,173
$883,14
35%
$441.54
35%
$2,976.84
37%
$10,328
$1,488.39
37%
$5,164
Transcribed Image Text:2020 Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later WEEKLY Payroll Perlod STANDARD Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 is NOT checked) Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) of the If the Adjusted Wage Amount (Ilne 1h) Is: If the Adjusted Wage Amount (Ilne 1h) Is: amount that the Adjusted Wage of the The amount that the Adjusted Wage The tentative tentative Plus this But less than- amount to withhold Is: But less amount to Plus this percentage- exceeds- At least- than- withhold Is: At least- percentage- exceeds- C E B D Married Filing Jointly Married Filing Jointly $0.00 0% $238 $428 $0 sO $0 $477 $0.00 0% $0 $238 $0.00 10% $238 $477 $857 $2,020 $3,766 $6,758 $8,452 $12,439 $477 $857 $0.00 10% $19.00 $1,010 $1,883 $3,379 $4,226 $6,220 $428 12% $428 $857 $2,020 $3,766 $6,758 $8,452 $12,439 $38.00 12% $88.84 22% $1,010 $1,883 $3,379 $4,226 $6,220 $1,010 $1,883 $3,379 $4,226 S6,220 $2,020 $177.56 22% $280.90 24% $3,766 $561.68 24% S639.94 32% $6,758 $1,279.76 32% $910.98 35% $8,452 $1,821.84 35% $1,608.88 37% S12,439 $3,217.29 37% Single or Married Filing Separately Single or Married Filing Separately $0.00 $0 $0 $119 $0.00 0% $0 $0 $238 0% $214 $0.00 10% $119 $238 S428 $1,010 $1,883 $3,379 $4,226 $238 $428 $0.00 10% $119 $428 $19.00 12% $214 S505 $9.50 12% $214 $1,010 $1,883 $3,379 $4,226 $10,208 $1,010 $88.84 22% $505 $942 $44.42 22% $505 $1,689 $2,113 $5,104 24% $942 $140.56 24% $942 $1,883 $3,379 $4,226 $10,208 $280.90 32% $1,689 $2,113 $5,104 $319.84 $1,689 $2,113 $639.94 32% $910.98 35% $455.52 35% $3,004.68 37% $10,208 $1,502.37 37% $5,104 Head of Household Head of Household $359 $0.00 0% $0 $0 $179 $0.00 0% $0 $359 $630 $1,391 $2,003 $3,499 $4,346 $359 $630 $0.00 10% $179 $315 $0.00 10% $179 $630 $315 $696 $13.60 $1,391 $2,003 $3,499 $4,346 $10,328 $27.10 12% 12% $315 $1,001 $1,750 $696 $59.32 $1,391 $2,003 $3,499 $4,346 $10,328 $118.42 22% 22% $696 $1,001 $1,750 $2,173 $5,164 $253.06 24% $126.42 24% $1,001 $2,173 $5,164 $612.10 32% $306.18 32% $1,750 $2,173 $883,14 35% $441.54 35% $2,976.84 37% $10,328 $1,488.39 37% $5,164
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