Example 4-3

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

Step 1Select 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 2Locate 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 $821Step 3Follow 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.

Figure 1.9

The names of the employees of Hogan Thrift Shop are listed on the following payroll register. Employees are paid weekly. The marital status and the number of allowances claimed are shown on the payroll register, along with each employee's weekly salary, which has remained the same all year. Complete the payroll register for the payroll period ending December 20, 20--, the 51st weekly payday. The state income tax rate is 2% of total earnings, the city income tax rate is 1.5% of the total gross earnings, and thewage-bracket methodis used for federal income taxes. Hint: If wages are higher than the last amount on the appropriate wage-bracket table, the percentage method must be used.

Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent.

Click here to access the Table of Allowance Values.

Click here to access the Wage-Bracket Method Tables.

Click here to access the Percentage Method Tables.

Hogan Thrift Shop

Payroll RegisterDeductionsFOR PERIOD ENDING December 20, 20--(a) FICAEmployee NameMarital

StatusNo. of W/H

AllowancesTotal

EarningsOASDIHI(b)

FIT(c)

SIT(d)

CIT(e)

Net PayJohn, MatthewM0$2,650.00$fill in the blank 1

$fill in the blank 2

$fill in the blank 3

$fill in the blank 4

$fill in the blank 5

$fill in the blank 6

Smith, JenniferS0275.00fill in the blank 7

fill in the blank 8

fill in the blank 9

fill in the blank 10

fill in the blank 11

fill in the blank 12

Bullen, CatherineM4250.00fill in the blank 13

fill in the blank 14

fill in the blank 15

fill in the blank 16

fill in the blank 17

fill in the blank 18

Matthews, MaryM3320.25fill in the blank 19

fill in the blank 20

fill in the blank 21

fill in the blank 22

fill in the blank 23

fill in the blank 24

Hadt, BonnieS2450.00fill in the blank 25

fill in the blank 26

fill in the blank 27

fill in the blank 28

fill in the blank 29

fill in the blank 30

Camp, SeanS0560.50fill in the blank 31

fill in the blank 32

fill in the blank 33

fill in the blank 34

fill in the blank 35

fill in the blank 36

Wilson, HelenS4475.50fill in the blank 37

fill in the blank 38

fill in the blank 39

fill in the blank 40

fill in the blank 41

fill in the blank 42

Gleason, JosieS3890.00fill in the blank 43

fill in the blank 44

fill in the blank 45

fill in the blank 46

fill in the blank 47

fill in the blank 48

Totals$5,871.25$fill in the blank 49

$fill in the blank 50

$fill in the blank 51

$fill in the blank 52

$fill in the blank 53

$fill in the blank 54

Compute the employer's FICA taxes for the pay period ending December 20, 20--.

OASDI TaxesHI TaxesOASDI taxable earnings$fill in the blank 55

HI taxable earnings$fill in the blank 56

OASDI taxes$fill in the blank 57

HI taxes$fill in the blank 58

Chapter 4 Problems eBook Show Me How Print Item Click here to access the Percentage Method Tables. Hogan Thrift Shop Payroll Register Deductions FOR PERIOD ENDING December 20, 20-- (a) FICA Marital No. of W/H Total (b) (c) (d) (e) Employee Name Status Allowances Earnings OASDI HI FIT SIT CIT Net Pay John, Matthew M 0 $2,650.00 $ $ Smith, Jennifer S O 275.00 Bullen, Catherine M 250.00 Matthews, Mary M W 320.25 Hadt, Bonnie S 2 450.00 Camp, Sean 0 560.50 Wilson, Helen 4 475.50 Gleason, Josie S 890.00 Totals $5,871.25 Compute the employer's FICA taxes for the pay period ending December 20, 20--. OASDI Taxes HI Taxes OASDI taxable earnings HI taxable earnings OASDI taxes HI taxesChapter 4 Problems eBook Show Me How Print Item Example 4-3 To use the wage-bracket method, follow the steps illustrated below. Step 1 Select the withholding table that applies to the Adrienne Huff is married and claims 3 allowances. She is paid weekly employee's marital status and pay period. 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 Move across the line to the column showing 3 allowances. allowances. Withhold this amount of tax. The tax to withhold is $35. Figure 1.9 The names of the employees of Hogan Thrift Shop are listed on the following payroll register. Employees are paid weekly. The marital status and the number of allowances claimed are shown on the payroll register, along with each employee's weekly salary, which has remained the same all year. Complete the payroll register for the payroll period ending December 20, 20--, the 51st weekly payday. The state income tax rate is 2% of total earnings, the city income tax rate is 1.5% of the total gross earnings, and the wage-bracket method is used for federal income taxes. Hint: If wages are higher than the last amount on the appropriate wage-bracket table, the percentage method must be used. Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent. Click here to access the Table of Allowance Values