George Clausen (age 48) is employed by Kline Company and is paid an annual salary of $42,640. He has just decided to join the company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Clausen: Round your answer to the nearest cent. As we go to press, the federal income tax rates for 2023 are being determined by budget talks in Washington, and are not available for publication. For this edition, the 2022 federal income tax tables for Manual Systems with Forms W-4 from 2020 or Later with Standard Withholding and 2022 FICA rates have been used. a. What is the maximum that he can contribute into this retirement fund? b. What would be the company's contribution? Note: For items c. & d. below, round interim amounts to two decimal places. Use these values in subsequent computations then round final answer to two decimal places. c. What would be his weekly take-home if he contributes the maximum allowed retirement contribution (married filing jointly, wage-bracket method , and a 2.3% state income tax on total wages)? Click here to access the Wage-Bracket Method Tables. d. What would be his weekly take-home pay without the retirement contribution deduction?
George Clausen (age 48) is employed by Kline Company and is paid an annual salary of $42,640. He has just decided to join the company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Clausen: Round your answer to the nearest cent. As we go to press, the federal income tax rates for 2023 are being determined by budget talks in Washington, and are not available for publication. For this edition, the 2022 federal income tax tables for Manual Systems with Forms W-4 from 2020 or Later with Standard Withholding and 2022 FICA rates have been used. a. What is the maximum that he can contribute into this retirement fund? b. What would be the company's contribution? Note: For items c. & d. below, round interim amounts to two decimal places. Use these values in subsequent computations then round final answer to two decimal places. c. What would be his weekly take-home if he contributes the maximum allowed retirement contribution (married filing jointly, wage-bracket method , and a 2.3% state income tax on total wages)? Click here to access the Wage-Bracket Method Tables. d. What would be his weekly take-home pay without the retirement contribution deduction?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter11: Individuals As Employees And Proprietors
Section: Chapter Questions
Problem 20P
Related questions
Question
George Clausen (age 48) is employed by Kline Company and is paid an annual salary of $42,640. He has just decided to join the company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Clausen: Round your answer to the nearest cent.
As we go to press, the federal income tax rates for 2023 are being determined by budget talks in Washington, and are not available for publication. For this edition, the 2022 federal income tax tables for Manual Systems with Forms W-4 from 2020 or Later with Standard Withholding and 2022 FICA rates have been used.
a. What is the maximum that he can contribute into this retirement fund?
b. What would be the company's contribution?
Note: For items c. & d. below, round interim amounts to two decimal places. Use these values in subsequent computations then round final answer to two decimal places.
c. What would be his weekly take-home if he contributes the maximum allowed retirement contribution (married filing jointly, wage-bracket method , and a 2.3% state income tax on total wages)?
Click here to access the Wage-Bracket Method Tables.
d. What would be his weekly take-home pay without the retirement contribution deduction?
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Transcribed Image Text:If the Adjusted Wage
Amount (line 1h) is
At least
SO
$125
$135
$145
$155
$165
$175
$185
$195
$205
$215
$225
$235
$245
$255
$265
$275
$285
$315
$325
$335
$345
$355
$365
$375
$385
$395
$405
$415
$425
$465
$475
$485
$495
$505
2022 Wage Bracket Method Tables for Manual Payroll Systems
with Forms W-4 From 2020 or Later
WEEKLY Payroll Period
$295
$305
$305 $315
$515
$525
$535
$545
$555
But less
than
$125
$135
$145
$155
$165
$175
$185
$195
$205
$215
$635
$645
$655
$225
$235
$245
$255
$265
$275
$285
$295
$425
$435
$435 $445
$445
$455
$455
$465
$325
$335
$345
$355
$365
$375
$385
$395
$405
$415
$475
$485
$495
$505
$515
$525
$535
$545
$555
$565
$565
$575
$585
$595
$605
$605 $615
$575
$585
$595
$615 $625
$625
$635
$645
$655
$665
$665
$675
$675
$685
$685
$695
$695 $705
$705
$715
$715
$725
$725
$735
$735 $745
$745
$755
$755
$765
Married Filing Jointly
Standard
withholding
Form W-4, Step 2.
Checkbox
withholding
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
50
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
SO
$0
20
$0
$0
do
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$11
$12
$13
$14
$15
$16
$17
$18
$19
$20
$21
$22
$23
$24
$25
$26
$0
$0
SO
SO
SO
$0
SO
$0
$0
$0
$0
$0
$0
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$11
Standard
withholding
The Tentative Withholding Amount is:
$12
$13
$14
$15
$16
$17
$18
$19
$20
$21
$23
$24
$25
$26
$27
$29
$30
$31
$32
$33
$35
$36
$37
$38
$39
$41
$42
$43
$44
$45
$47
$48
$49
$50
$51
Head of Household
Form W-4, Step 2.
Checkbox
withholding
$53
$54
$55
$56
$57
SO
SO
SO
SO
SO
SO
SO
SO
SO
SO
SO
SO
SO
SO
SO
SO
SO
SO
$0
$0
$0
SO
SO
SO
$0
SO
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$11
$12
$13
$14
$15
$16
$17
$18
$19
$20
$21
$22
$23
$24
$25
$26
$27
$28
$29
$30
$31
$32
$34
$35
$36
$37
$38
$40
$41
$0
$0
$0
SO
$0
SO
SO
SO
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$11
$12
$13
$14
$16
$17
$18
$19
$20
$22
$23
$24
$25
$26
$28
$29
$30
$31
$32
$34
$35
$36
$37
$38
$40
$41
$42
$43
$44
$46
$47
$48
$49
$50
$52
$53
$54
$55
$56
$58
$59
$60
$61
$63
$65
$67
$70
Single or Married Filing Separately
Form W-4, Step 2.
Checkbox
withholding
Standard
withholding
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
SO
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$11
$12
$13
$14
$15
$16
$17
$18
$19
$20
$21
$23
$24
$25
$26
$27
$29
$30
$31
$32
$33
$35
$36
$37
$38
$39
$41
$42
$43
$44
$45
$47
$48
$49
$50
$51
WEEKLY
PAYROLL PERIOD
$53
$54
$55
$56
$57
SO
$2
$3
$4
$5
$6
S7
$8
$9
$10
$11
$12
$13
$14
$15
$17
$18
$19
$20
$21
$23
$24
$25
$26
$27
$29
$30
$31
$32
$33
$35
$36
$37
$38
$39
$41
$42
$43
$44
$45
$47
$49
$51
$54
$56
$58
$60
$62
$65
$67
$69
$71
$73
$76
$78
$80
$82
$84
$87
$89
$91
$93
$95
$98
If the Adjusted Wage
Amount (line 1h) is
At least
$765
$775
$785
$795
$805
$815
$825
$835
$845
$855
$865
$875
$885
$895
$905
$915
$925
$935
$945
$955
$965
$975
2022 Wage Bracket Method Tables for Manual Payroll Systems
with Forms W-4 From 2020 or Later
$985
$995
$1,005
But less
than
$775
$785
$795
$805
$815
$825
$835
$845
$855
$865
$875
$885
$895
$905
$915
$925
$935
$945
$955
$965
$975
$985
$995
$1,005
$1,015
$1,015 $1,025
$1,025 $1,035
$1,035 $1,045
$1,055
$1,055 $1,065
$1,045
$1,065 $1,075
$1,075 $1,085
$1,085 $1,095
$1,095 $1,105
$1,105 $1,115
$1,115
$1,125
$1,125 $1,135
$1,135 $1,145
$1,145 $1,155
$1,155
$1,165
$1,165 $1,175
$1,175 $1,185
$1,185 $1.195
$1,195 $1,205
$1,205
$1,215
$1,215
$1,225
$1,235
$1,245 $1,255
$1,255 $1,265
$1,225
$1,235
$1,245
$1,265 $1,275
$1,275 $1,285
$1,285 $1,295
$1,295 $1,305
$1,305 $1,315
$1,315
$1,325
$1,335 $1,345
$1,325
$1.335
$1,345 $1,355
$1,355 $1,365
$1,365 $1,375
$1,385
$1,395
$1,375
$1,385
$1,395 $1,405
$1,405 $1,415
Married Filing Jointly
Standard
withholding
Form W-4, Step 2.
Checkbox
withholding
$27
$28
$29
$30
$31
$32
$33
$34
$35
$36
$37
$38
$39
$40
$42
$43
$44
$45
$46
$48
$49
$50
$51
$52
$54
$55
$56
$57
$58
$60
$61
$62
$63
$64
$66
$67
$68
$69
$70
$72
$73
$74
$75
$76
$78
$79
$80
$81
$82
$84
$85
$86
$87
$88
$90
$91
$92
$93
$94
$96
WEEKLY Payroll Period
$97
$98
$99
$100
$102
$59
$60
$61
$62
$63
$65
$66
$67
$68
$69
$71
$72
$73
$74
$75
$77
$78
$79
$80
$81
$83
$84
$85
$86
$87
$89
$90
$91
$92
$94
$96
$99
$101
$103
$105
$107
$110
$112
$114
$116
$118
$121
$123
$125
$127
$129
$132
$134
$136
$138
$140
$143
$145
$147
$149
$151
$154
$156
$158
$160
Head of Household
Form W-4, Step 2.
Standard
Checkbox
withholding withholding
The Tentative Withholding Amount is:
$162
$165
$167
$169
$171
$42
$43
$44
$46
$47
$48
$49
$50
$52
$53
$54
$55
$56
$58
$59
$60
$61
$62
$64
$65
$66
$67
$68
$70
$71
$72
$73
$74
$76
$77
$78
$79
$80
$82
$83
$84
$85
$86
$88
$89
$90
201
$91
$92
$94
$95
$96
$97
$98
$100
$101
$102
$103
$104
$106
$107
$108
$109
$110
$112
$113
$114
$115
$116
$118
$119
$72
$74
$76
$78
$81
$83
$85
$87
$89
$92
$94
$96
$98
$100
$103
$105
$107
$109
$111
$114
$116
$118
$120
$122
$125
$127
$129
$131
$134
$136
$138
$141
$143
$146
$148
$150
$153
$155
$158
$160
$162
$165
$167
$170
$172
$174
$177
$179
$182
$184
$186
$189
$191
$194
$196
$198
$201
$203
$206
$208
$210
$213
$215
Single or Married Filing Separately
Form W-4, Step 2.
Checkbox
withholding
$218
$220
Standard
withholding
$59
$60
$61
$62
$63
$65
$66
$67
$68
$69
S71
$72
$73
$74
$75
$77
$78
$79
$80
$81
$83
$84
$85
$86
$87
$89
$90
$91
$92
$94
$96
$99
$101
$103
$105
$107
$110
$112
$114
$116
$118
$121
$123
$125
$127
$129
$132
$134
$136
$138
$140
$143
$145
$147
$149
$151
$154
$156
$158
$160
$162
$165
$167
$169
$171
$100
$102
$104
$106
$109
$111
$113
$115
$117
$120
$122
$124
$126
$128
$131
$133
$135
$137
$139
$142
$144
$146
$148
$151
$153
$156
$158
$160
$163
$165
$168
$170
$172
$175
$177
$180
$182
$184
$187
$189
$192
$194
$196
$199
$201
$204
$206
$208
$211
$213
$216
$218
$220
$223
$225
$228
$230
$232
$235
$237
$240
$242
$244
$247
$249
Transcribed Image Text:2022 Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later
WEEKLY Payroll Period
STANDARD Withholding Rate Schedules
(Use these if the box in Step 2 of Form W-4 is NOT checked)
If the Adjusted Wage
Amount (line 1h) is:
At least-
A
$0
$498
$893
$2,105
$3,924
$7,038
$8,804
$12,957
$0
$249
$447
$1,052
$1,962
$3,519
$4,402
$10,632
$0
$373
$655
$1,448
$2,086
$3,643
$4,526
$10,756
At least-
A
$0
$996
$1,787
$4,210
$7,848
$14,077
$17,608
$25,913
$0
$498
$893
But less
than-
B
If the Adjusted Wage
Amount (line 1h) is:
$2,105
$3,924
$7,038
$8,804
$21,263
$2,105
$3,924
$7,038
$8,804
$12,957
$0
$746
$1,310
$2,896
$4,171
$7,287
$9,052
$21,512
с
Married Filing Jointly
$498
$893
$1,052
$1,962
$3,519
$4,402
$10,632
$373
$655
$1,448
$2,086
$3,643
$4,526
$10,756
The
tentative
amount to
withhold is:
$0.00
$0.00
$39.50
Single or Married Filing Separately
$249
$0.00
$447
$0.00
$184.94
$585.12
$1,332.48
$1,897.60
$3,351.15
But less
than-
B
$19.80
$92.40
Head of Household
$0.00
$0.00
$28.20
$123.36
$263.72
$292.60
$666.28
$948.84
$3,129.34
$3,924
$7,038
$637.40
$919.96
$3,100.46
STANDARD Withholding Rate Schedules
(Use these if the box in Step 2 of Form W-4 is NOT checked)
The
tentative
amount to
withhold is:
с
Married Filing Jointly
$996
$1,787
$4,210
$7,848
$0.00
$0.00
$79.10
$369.86
$14,077 $1,170.22
$17,608 $2,665.18
$25,913
$3,795.10
$6.701.85
of the
amount that
the Adjusted
Plus this Wage
percentage- exceeds-
D
E
$0.00
$0.00
$39.50
$184.94
$585.12
$8,804 $1,332.48
$21,263
$1,897.60
$6,258.25
0%
10%
12%
22%
24%
32%
$746
$1,310
$2,896
$4,171
$7,287
$9,052 $1,275.06
35%
37%
Head of Household
$0.00
$0.00
$56.40
$246.72
$527.22
$21,512 $1,839.86
$6,200.86
0%
10%
12%
22%
24%
32%
35%
37%
0%
10%
12%
22%
Single or Married Filing Separately
$498
$893
$2,105
24%
32%
35%
37%
Plus this
percentage-
D
0%
10%
12%
22%
24%
32%
35%
37%
0%
10%
12%
22%
24%
32%
35%
37%
0%
10%
12%
$0
22%
24%
32%
35%
37%
$498
$893
$2,105
$3,924
$7,038
$8,804
$12,957
$0
$249
$447
$1,052
$1,962
$3,519
$4,402
$10,632
$0
$373
$655
$1,448
$2,086
$3,643
$4,526
$10,756
of the
amount that
the Adjusted
Wage
exceeds-
E
$0
$996
$1,787
$4,210
$7,848
2022 Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later
BIWEEKLY Payroll Period
$14,077
$17,608
$25,913
$0
$498
$893
$2,105
$3,924
$7,038
$8,804
$21,263
$0
$746
$1,310
$2,896
$4,171
$7,287
Form W-4, Step 2, Checkbox, Withholding Rate Schedules
(Use these if the box in Step 2 of Form W-4 IS checked)
$9,052
$21,512
If the Adjusted Wage
Amount (line 1h) is
At least-
A
$0
$249
$447
$1,052
$1,962
$3,519
$4,402
$6,478
$0
$125
$223
$526
$981
$1,760
$2,201
$5,316
$0
$187
$327
$724
$1,043
$1,822
$2,263
$5,378
At least-
A
If the Adjusted Wage
Amount (line 1h) is:
$0
$498
$893
$2,105
$3,924
$7,038
$8,804
$12,957
$0
$249
$447
$1,052
$1,962
$3,519
$4,402
$10,632
The
tentative
amount to
withhold is:
с
Married Filing Jointly
$249
$447
But less
than-
B
$0
$373
$655
$1,448
$2,086
$3,643
$4,526
$10,756
$1,052
$1,962
$3,519
$4,402
$6,478
$1,760
$2,201
$5,316
Single or Married Filing Separately
$125
$0.00
$223
$0.00
$526
$9.80
$981
$46.16
$187
$327
$724
$1,043
$1,822
$2,263
$5,378
Head of Household
$0.00
$0.00
$0.00
$0.00
$19.80
$92.40
$292.60
$666.28
$948.84
$1,675.44
But less
than-
B
$2,105
$3,924
$7,038
$146.26
$333.22
$474.34
$1,564.59
The
tentative
amount to
withhold is:
с
Married Filing Jointly
$498
$893
$14.00
$61.64
$131.82
$318.78
$459.90
$1,550.15
$4,402
$10,632
Form W-4, Step 2, Checkbox, Withholding Rate Schedules
(Use these if the box in Step 2 of Form W-4 IS checked)
$373
$655
$8,804
$1.332.48
$12,957 $1,897.60
$3,351.15
$1,448
$2,086
$3,643
$4,526
$10,756
$0.00
$0.00
$39.50
$184.94
$585.12
Plus this
percentage-
D
$0.00
$19.80
$92.40
$292.60
$666.28
$948.84
$3,129.34
0%
10%
12%
22%
Head of Household
$0.00
$0.00
24%
32%
35%
37%
$28.20
$123.36
$263.72
$637.40
$919.96
$3,100.46
0%
10%
Single or Married Filing Separately
$249
$0.00
$447
$1,052
$1,962
$3,519
12%
22%
24%
32%
35%
37%
0%
10%
12%
22%
24%
32%
35%
37%
Plus this
percentage-
D
0%
10%
12%
22%
24%
32%
35%
37%
0%
10%
12%
22%
24%
32%
35%
37%
of the
amount that
the Adjusted
Wage
exceeds-
E
0%
10%
12%
22%
24%
32%
35%
37%
$0
$249
$447
$1,052
$1,962
$3,519
$4,402
$6,478
$0
$125
$223
$526
$981
$1,760
$2,201
$5,316
$0
$187
$327
$724
$1,043
$1,822
$2,263
$5,378
of the
amount that
the Adjusted
Wage
exceeds-
E
$0
$498
$893
$2,105
$3,924
$7,038
$8,804
$12,957
$0
$249
$447
$1,052
$1,962
$3,519
$4,402
$10,632
$0
$373
$655
$1,448
$2,086
$3,643
$4,526
$10,756
Solution
by Bartleby ExpertRecommended textbooks for you
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ISBN:
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Author:
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Publisher:
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