Example $4-4$

To 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 $1$

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 $$34.$

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.

As we go to press, the federal income tax rates for $2022$ are being determined by budget talks in Washington and not available for publication. For this edition, the $2021$ federal income tax tables for Manual Systems with Forms W$-4$ from $2020$ or later with Standard Withholding and $2021$ 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

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

$123$

Mike Cramden S N$/$A W $590$ fill in the blank $2$

$38$

Jim Jones S N$/$A W $675$ fill in the blank $3$

$47$

Joan Kern MFJ N$/$A M $3,100$ fill in the blank $4$

$261$

Mary Long MFJ N$/$A M $2,730$ fill in the blank $5$

Cathy Luis MFJ N$/$A S $955$ fill in the blank $6$

Josie Martin S N$/$A D $108$ fill in the blank $7$

Terri Singer S N$/$A S $2,500$ fill in the blank $8$

Shelby Torres MFJ N$/$A M $3,215$ fill in the blank $9$