Example 4-3

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

Step 1
Select 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 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 allowances. Withhold this amount of tax.		Move across the line to the column showing 3 allowances.
		The tax to withhold is $35.

Ernesto 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. If an amount is zero, enter "0". Enter all amounts as positive numbers.

Click here to access the Wage-Bracket Method Tables.

Employee	Marital Status	No. of Withholding Allowances	Payroll Period W = Weekly S = Semimonthly M = Monthly D = Daily	Wage	Amount to Be Withheld
Ed Boone	M	1	W	$1,250	$fill in the blank 1
Ray Ortega	S	1	W	695	fill in the blank 2
Carl Lopez	S	3	W	915	fill in the blank 3
Terri Kim	M	6	M	3,070	fill in the blank 4
Kathy Horace	M	2	M	2,730	fill in the blank 5
John Gleam	M	8	S	1,200	fill in the blank 6
Rob Abreu	S	1	D	115	fill in the blank 7
Carmen Sanchez	S	4	S	2,040	fill in the blank 8
Howard Nee	M	4	M	3,500	fill in the blank 9

Tax Table B T5 - T14

Tax Table B T5 - T14