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.

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.

Click here to access the Table of Allowance Values.

Click here to access the Percentage Method Tables.

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
Hal Bower	M	1	W	$1,350	$fill in the blank 1
Ruth Cramden	S	1	W	590	fill in the blank 2
Gil Jones	S	3	W	675	fill in the blank 3
Teresa Kern	M	4	M	3,100	fill in the blank 4
Ruby Long	M	2	M	2,730	fill in the blank 5
Katie Luis	M	8	S	955	fill in the blank 6
Susan Martin	S	1	D	108	fill in the blank 7
Jim Singer	S	4	S	2,610	fill in the blank 8
Martin Torres	M	4	M	3,215