Example $4-4$

To use the $2023$ Wage Bracket Method for Manual Payroll Systems With Forms W$-4$ From $2020$ or Later using Standard Withholding, follow the steps illustrated below.

Step $1$

Select the withholding table that applies to the employee's pay period. $$ Adrienne Huff is married filing jointly $($MFJ$).$ She is paid weekly at a rate of $$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 $4\mathrm{.}7)$:

At least $$815$ but less than $$825$

Step $3$

Follow the line for the wage bracket across to the right to the column showing the appropriate filing status with standard withholding. Withhold this amount of tax. $$ Move across the line to the column showing Married Filing Jointly, Standard withholding.

The tax to withhold is $$29.$

Eaton Enterprises uses the wage$-$bracket method to determine federal income tax withholding on its employees.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

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 calculations to two decimals and use in subsequent computations. Round final answer to two decimal places.

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.

Click here to access the Wage$-$Bracket Method Tables.

Employee

Filing

Status

No$.$ of

Withholding

Allowances Payroll Period

W $=$ Weekly

S $=$ Semimonthly

M $=$ Monthly

D $=$ Daily

Wage

Amount to Be Withheld Federal Income Taxes

Eaton Enterprises uses the wage$-$bracket method to determine federal income tax withholding on

its employees.

REQUIRED:

Find the amount to withhold from the wages paid each employee.

Perform the required analysis, and input your answers in the green entry cells. If no entry is

required, enter $=0.$ Transfer the numeric results for the green entry cells into the appropriate fields

in CNOWv$2$ for grading. Example $4-4$

To use the $2023$ Wage Bracket Method for Manual Payroll Systems With Forms W$-4$ From $2020$ or Later using Standard Withholding,

follow the steps illustrated below.

Step $1$

Select the withholding table that applies to the employee's pay

period.

Adrienne Huff is married filing jointly $($MFJ$).$ She is paid weekly

Step $2$

Locate the wage bracket $($the first two columns of the table$)$ in

which the employee's gross wages fall.

at a rate of $$815.$ Eaton Enterprises uses the wage$-$bracket method to determine federal income tax withholding on its employees.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

final answer to two decimal places.

with Forms $W-4$ from $2020$ or Later with Standard Withholding and $2022$ FICA rates have been used.

Click here to access the Wage$-$Bracket Method Tables.

Tarra James HH N$/$A W $$1,350$ fill in the blank

Mike Cramden MFJ N$/$A W $590$ fill in the blank

Jim Jones HH N$/$A W $675$ fill in the blank

Joan Kern MFJ N$/$A M $3,100$ fill in the blank

Mary Long S N$/$A M $2,730$ fill in the blank

Cathy Luis S N$/$A S $955$ fill in the blank

Josie Martin S N$/$A D $108$ fill in the blank

Terri Singer MFJ N$/$A S $2,500$ fill in the blank

Shelby Torres HH N$/$A M $3,215$ fill in the blank