Example 4-3 To use the wage-bracket method, follow the steps illustrated below. Step 1 Select the withholding table that applies to the employee's marital status and pay period. ➡ Adrienne Huff is married and claims 3 allowances. She is paid weekly at a rate of $815. Step 2 Locate the wage bracket (the first two columns of the table) in which the employee's gross wages fall. ➡ Locate the appropriate wage bracket (see Figure 4.7): At least $810 but less than $821 Step 3 Follow the line for the wage bracket across to the right to the column showing the appropriate number of allowances. Withhold this amount of tax. ➡ Move across the line to the column showing 3 allowances. The tax to withhold is $35. Eaton Enterprises uses the wage-bracket method to determine federal income tax withholding on its employees. Find the amount to withhold from the wages paid each employee. Enter all amounts as positive numbers. If an amount is zero, enter "0". Round interim and final answers to two decimal places. Click here to access the Table of Allowance Values. Click here to access the Percentage Method Tables. Click here to access the Wage-Bracket Method Tables. Employee Marital Status No. of Withholding Allowances Payroll Period W = Weekly S = Semimonthly M = Monthly D = Daily Wage Amount to Be Withheld Hal Bower M 1 W $1,350 118 Ruth Cramden S 1 W 590 49 Gil Jones S 3 W 675 39 Teresa Kern M 4 M 3,100 71 Ruby Long M 2 M 2,730 105 Katie Luis M 8 S 955 0 Susan Martin S 1 D 108 9 Jim Singer S 4 S 2,610 fill in the blank 8 Martin Torres M 4 M 3,215 fill in the blank 9

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter13: Tax Credits And Payment Procedures

Section: Chapter Questions

Problem 38P

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Example 4-3

To use the wage-bracket method, follow the steps illustrated below.

Step 1
Select the withholding table that applies to the employee's marital status and pay period.	➡	Adrienne Huff is married and claims 3 allowances. She is paid weekly at a rate of $815.
Step 2
Locate the wage bracket (the first two columns of the table) in which the employee's gross wages fall.	➡	Locate the appropriate wage bracket (see Figure 4.7):
		At least $810 but less than $821
Step 3
Follow the line for the wage bracket across to the right to the column showing the appropriate number of allowances. Withhold this amount of tax.	➡	Move across the line to the column showing 3 allowances.
		The tax to withhold is $35.

Eaton Enterprises uses the wage-bracket method to determine federal income tax withholding on its employees. Find the amount to withhold from the wages paid each employee. Enter all amounts as positive numbers. If an amount is zero, enter "0". Round interim and final answers to two decimal places.

Click here to access the Table of Allowance Values.

Click here to access the Percentage Method Tables.

Click here to access the Wage-Bracket Method Tables.

Employee	Marital Status	No. of Withholding Allowances	Payroll Period W = Weekly S = Semimonthly M = Monthly D = Daily	Wage	Amount to Be Withheld
Hal Bower	M	1	W	$1,350	118
Ruth Cramden	S	1	W	590	49
Gil Jones	S	3	W	675	39
Teresa Kern	M	4	M	3,100	71
Ruby Long	M	2	M	2,730	105
Katie Luis	M	8	S	955	0
Susan Martin	S	1	D	108	9
Jim Singer	S	4	S	2,610	fill in the blank 8
Martin Torres	M	4	M	3,215	fill in the blank 9

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