Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee. Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent.Use the 2020 Federal income taxes tables for the percentage method table and the wage bracket method table Amount to BeWithheldNo. ofFilingwithholdingGross WagePercentageWage-BracketEmployeeAllowancesor SalaryMethodMethodStatusLennon, A.MFJN/A$675 weeklyStarr, P.MFJN/A1,929 weeklyMcNeil, S.MFJN/A1,775 biweeklyHarrison, W.MFJN/A2,580 semimonthlySmythe, M.MFJN/A5,380 monthly Example 4-2To compute the tax using the percentage method for Manual Payroll Systems with Forms W-4 from 2020 or Later using StandardWithholding Rate Schedules, follow the steps illustrated below.Step 1Determine the amount of gross wages earned, filing status,adjustments on Form W-4, and frequency of pay. Note: If the wageWilson Goodman, single(S), has no adjustments on hisends in a fractional dollar amount, the wage may be rounded to theForm W-4 and earns $915.60 semimonthly.nearest dollar. However, in this text, exact wages are used.Compute tax from Tax Table A, Semimonthly, StandardStep 2Withholding Rate Schedule, page T-3.Determine the withholding tax by referring to the appropriatePercentage Method Withholding Table (see Figure 4.6 below).($915.60 - $517.00 = $398.60 x 10% = $39.86 + $0) =$39.86Example 4-3To use the wage-bracket method for Manual Payroll Systems With Forms W-4 From 2020 or Later using Standard Withholding,follow the steps illustrated below.Step 1Select the withholding table that applies to the employee's payAdrienne Huff is married filing jointly (MFJ). She is paid weeklyperiod.at a rate of $815.Step 2Locate the wage bracket (the first two columns of the table) inLocate the appropriate wage bracket (see Figure 4.7):which the employee's gross wages fall.At least $810 but less than $820Step 3Follow the line for the wage bracket across to the right to theMove across the line to the column showing Married Filingcolumn showing the appropriate filing status with standardJointly, Standard withholding.withholding. Withhold this amount of tax.The tax to withhold is $34.

The wages paid to employees are subject to withholding taxes. There exist two methods to determine…

Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee. Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent. Use the 2020 Federal income taxes tables for the percentage method table and the wage bracket method table

Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee. Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent. Use the 2020 Federal income taxes tables for the percentage method table and the wage bracket method table

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 3BD

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Hello, can you help me with this question? Amount to BeWithheld Employee FilingStatus No. of WithholdingAllowances Gross Wageor Salary PercentageMethod Wage-BracketMethod Lennon, A. MFJ N/A $675 weekly $fill in the blank 1 $fill in the blank 2 Starr, P. MFJ N/A 1,929 weekly fill in the blank 3 fill in the blank 4 McNeil, S. S N/A 1,775 biweekly fill in the blank 5 fill in the blank 6 Harrison, W. HH N/A 2,580 semimonthly fill in the blank 7 fill in the blank 8 Smythe, M. HH N/A 5,380 monthly fill in the blank 9 fill in the blank 10
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