For each employee listed, use the percentage method to calculate federal income tax withholding, assuming that each has submitted a pre-2020 Form W-4. Then calculate both the state income tax withholding (assuming a state tax rate of 5.0% of taxable pay, with taxable pay being the same for federal and state income tax withholding), and the local income tax withholding. Refer to the Federal Tax Tables in Appendix A of your textbook. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1: Frank Claiborne (married; 5 federal withholding allowances) earned weekly gross pay of $2,040. For each period, he makes a 401(k) retirement plan contribution of 11.5% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 1.4% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents, and 1.3% of an employee's taxable pay on nonresidents. Federal income tax withholding = $ State income tax withholding = $ Local income tax withholding = $
For each employee listed, use the percentage method to calculate federal income tax withholding, assuming that each has submitted a pre-2020 Form W-4. Then calculate both the state income tax withholding (assuming a state tax rate of 5.0% of taxable pay, with taxable pay being the same for federal and state income tax withholding), and the local income tax withholding. Refer to the Federal Tax Tables in Appendix A of your textbook.
NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
1: Frank Claiborne (married; 5 federal withholding allowances) earned weekly gross pay of $2,040. For each period, he makes a 401(k) retirement plan contribution of 11.5% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 1.4% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents, and 1.3% of an employee's taxable pay on nonresidents.
Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $
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