James Marbury is the payroll accountant at All's Fair Gifts. The employees of All's Fair Gifts...

 

Transcribed Image Text:

James Marbury is the payroll accountant at All's Fair Gifts. The employees of All's Fair Gifts are paid semimonthly. Lauren Stenn comes to him on April 2 and requests a pay advance of $1,000, which Lauren will pay back in equal parts on the April 15 and May 15 paychecks. Lauren is single with one dependent under 17 and is paid $51,920 per year. Lauren contributes 3 percent of gross pay to a 401(k) and has $141 per paycheck deducted for a Section 125 plan. Required: Compute the net pay on Lauren's April 15 paycheck. The applicable state income tax rate is 5.25 percent. Use the percentage method for manual payroll systems with Forms W-4 from 2020 or later in Appendix C to determine the federal income tax. Assume box 2 is not checked. (Round your intermediate calculations and final answer to 2 decimal places.) 2021 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later SEMIMONTHLY Payroll Period STANDARD Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 is NOT checked) If the Adjusted Wage Amount (line 1h) is: At least- A SO $1,046 $1,875 $4,423 $8,244 $14,790 $18,498 $27,225 $0 $523 $938 $2,211 $4,122 $7,395 $9,249 $22,340 $O $783 $1,375 $3,042 $4,381 $7,654 $9,508 $22,600 But less than- B The tentative amount to withhold is: с Married Filing Jointly $1,046 $1,875 $4,423 $8,244 $14,790 $1,229.28 $18,498 $2,800.32 $27,225 $3,986.88 $7,041.33 $0.00 $0.00 $82.90 $388.66 $7,395 $9,249 $22,340 Plus this percentage D 0% 10% 12% 22% 24% Single or Married Filing Separately $523 $0.00 $938 $0.00 $2,211 $41.50 $4,122 $194.26 $614.68 $1,400.20 $1,993.48 $6,575.33 Head of Household $783 $0.00 $1,375 $0.00 $3,042 $59.20 $4,381 $259.24 $7,654 $553.82 $9,508 $1,339.34 $22,600 $1,932.62 $6,514.82 32% 35% 37% 0% 10% 12% 22% 24% 32% 35% 37% 0% 10% 12% 22% 24% 32% 35% 37% of the amount that the Adjusted Wage exceeds- E $0 $1,046 $1,875 $4,423 $8,244 $14,790 $18,498 $27,225 $0 $523 $938 $2,211 $4,122 $7,395 $9,249 $22,340 $0 $783 $1,375 $3,042 $4,381 $7,654 $9,508 $22,600 Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage Amount (line 1h) is: At least- A $0 $523 $938 $2,211 $4,122 $7,395 $9,249 $13,613 $0 $261 $469 $1,106 $2,061 $3,697 $4,624 $11,170 $0 $392 $688 $1,521 $2,191 $3,827 $4,754 $11,300 But less than- B $523 $938 с Married Filing Jointly $0.00 $0.00 $41.50 $194.26 $7,395 $614.68 $9,249 $1,400.20 $13,613 $1,993.48 $3,520.88 $2,211 $4,122 The tentative amount to withhold is: $469 $1,106 $2,061 $3,697 $4,624 $11,170 Plus this percentage- D Single or Married Filing Separately $261 $0.00 $0.00 $20.80 $97.24 $307.34 $699.98 $996.62 $3,287.72 $392 $688 $1,521 $2,191 $3,827 $4,754 $11,300 Head of Household $0.00 $0.00 $29.60 $129.56 $276.96 $669.60 $966.24 $3,257.34 0% 10% 12% 22% 24% 32% 35% 37% 0% 10% 12% 22% 24% 32% 35% 37% 0% 10% 12% 22% 24% 32% 35% 37% of the amount that the Adjusted Wage exceeds- E $0 $523 $938 $2,211 $4,122 $7,395 $9,249 $13,613 $0 $261 $469 $1,106 $2,061 $3,697 $4,624 $11,170 SO $392 $688 $1,521 $2.191 $3,827 $4,754 $11,300 James Marbury is the payroll accountant at All's Fair Gifts. The employees of All's Fair Gifts are paid semimonthly. Lauren Stenn comes to him on April 2 and requests a pay advance of $1,000, which Lauren will pay back in equal parts on the April 15 and May 15 paychecks. Lauren is single with one dependent under 17 and is paid $51,920 per year. Lauren contributes 3 percent of gross pay to a 401(k) and has $141 per paycheck deducted for a Section 125 plan. Required: Compute the net pay on Lauren's April 15 paycheck. The applicable state income tax rate is 5.25 percent. Use the percentage method for manual payroll systems with Forms W-4 from 2020 or later in Appendix C to determine the federal income tax. Assume box 2 is not checked. (Round your intermediate calculations and final answer to 2 decimal places.) 2021 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later SEMIMONTHLY Payroll Period STANDARD Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 is NOT checked) If the Adjusted Wage Amount (line 1h) is: At least- A SO $1,046 $1,875 $4,423 $8,244 $14,790 $18,498 $27,225 $0 $523 $938 $2,211 $4,122 $7,395 $9,249 $22,340 $O $783 $1,375 $3,042 $4,381 $7,654 $9,508 $22,600 But less than- B The tentative amount to withhold is: с Married Filing Jointly $1,046 $1,875 $4,423 $8,244 $14,790 $1,229.28 $18,498 $2,800.32 $27,225 $3,986.88 $7,041.33 $0.00 $0.00 $82.90 $388.66 $7,395 $9,249 $22,340 Plus this percentage D 0% 10% 12% 22% 24% Single or Married Filing Separately $523 $0.00 $938 $0.00 $2,211 $41.50 $4,122 $194.26 $614.68 $1,400.20 $1,993.48 $6,575.33 Head of Household $783 $0.00 $1,375 $0.00 $3,042 $59.20 $4,381 $259.24 $7,654 $553.82 $9,508 $1,339.34 $22,600 $1,932.62 $6,514.82 32% 35% 37% 0% 10% 12% 22% 24% 32% 35% 37% 0% 10% 12% 22% 24% 32% 35% 37% of the amount that the Adjusted Wage exceeds- E $0 $1,046 $1,875 $4,423 $8,244 $14,790 $18,498 $27,225 $0 $523 $938 $2,211 $4,122 $7,395 $9,249 $22,340 $0 $783 $1,375 $3,042 $4,381 $7,654 $9,508 $22,600 Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage Amount (line 1h) is: At least- A $0 $523 $938 $2,211 $4,122 $7,395 $9,249 $13,613 $0 $261 $469 $1,106 $2,061 $3,697 $4,624 $11,170 $0 $392 $688 $1,521 $2,191 $3,827 $4,754 $11,300 But less than- B $523 $938 с Married Filing Jointly $0.00 $0.00 $41.50 $194.26 $7,395 $614.68 $9,249 $1,400.20 $13,613 $1,993.48 $3,520.88 $2,211 $4,122 The tentative amount to withhold is: $469 $1,106 $2,061 $3,697 $4,624 $11,170 Plus this percentage- D Single or Married Filing Separately $261 $0.00 $0.00 $20.80 $97.24 $307.34 $699.98 $996.62 $3,287.72 $392 $688 $1,521 $2,191 $3,827 $4,754 $11,300 Head of Household $0.00 $0.00 $29.60 $129.56 $276.96 $669.60 $966.24 $3,257.34 0% 10% 12% 22% 24% 32% 35% 37% 0% 10% 12% 22% 24% 32% 35% 37% 0% 10% 12% 22% 24% 32% 35% 37% of the amount that the Adjusted Wage exceeds- E $0 $523 $938 $2,211 $4,122 $7,395 $9,249 $13,613 $0 $261 $469 $1,106 $2,061 $3,697 $4,624 $11,170 SO $392 $688 $1,521 $2.191 $3,827 $4,754 $11,300

Answer rating: 100% (QA)

To compute the net pay on Laurens April 15 paycheck we need to follow these steps considering the pa... View the full answer