Question: For each employee listed, use both the wage-bracket method and the percentage method to calculate federal income tax withholding. Refer to Appendix A, 2016 Federal
For each employee listed, use both the wage-bracket method and the percentage method to calculate federal income tax withholding. Refer to Appendix A, 2016 Federal Tax Tables. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
1A:Warren Cavanagh (single; 0 federal withholding allowances) earned weekly gross pay of $620. For each period, he makes a 401(k) retirement plan contribution of 5% of gross pay. Using wage-bracket method: Federal income tax withholding = $ Using percentage method: Federal income tax withholding = $
1B:Stacey Vaughn (married; 4 federal withholding allowances) earned daily gross pay of $275. For each period, she makes a 401(k) contribution of 8% of gross pay. Using wage-bracket method: Federal income tax withholding = $ Using percentage method: Federal income tax withholding = $
3C:Jordan Peters (single; 3 federal withholding allowances) earned monthly gross pay of $3,300. He contributes $150 to a flexible spending account during the period. Using wage-bracket method: Federal income tax withholding = $ Using percentage method: Federal income tax withholding = $
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