There are 2 taxable wages amounts for federal withholding: A. 1687.50 ( Married
ID: 2405408 • Letter: T
Question
There are 2 taxable wages amounts for federal withholding:
A. 1687.50 ( Married with 7 allowances)
B. 1953.52 ( Single with 4 allowances)
Please calculate the federal tax rate using the percentage method for both. 0 is not the answer. Show all calculations please. Use Semimonthly Schedule. I don't understand the (a) or (b) IRS instructions.
TABLE 3-SEMIMONTHLY Payroll Period (a) SINGLE person (including head of household)- If the amount of wages (after subtracting withholding allowances) is: to withhold is (b) MARRIED person- If the amount of wages (after subtracting withholding allowances) is: The amount of income tax The amount of income tax to withhold is $0 Not over $360 But not over- of excess over- Over- But not over- -$1,138.. $3,523 .. $6.740 . . Over- $96 $484 $1,677 $3,925 $8,081 $17,458 $17,529 $484.. $0.00 plus 10% -$1,677 . . $38.80 plus 15% -$3,925 . . $217.75 plus 25% $8,081 . . $779.75 plus 28% -$17,458 . . $1,943.43 plus 33% -$17,529 . . $5,037.84 plus 35% $0.00 plus 10% $77.80 plus 15% $435.55 plus 25% $1,239.80 plus 28% $2,175.84 plus 33% $4,697.04 plus 35% $5,484.54 plus 39.6% of excess over_ S360 -$1,138 -$3,523 -$6,740 $10,083 -$17,723 $19,973 -$96 $360 _ $484 $1,138 -$1,677$3,523 -$3,925 $6,740$10,083 . . -$8,081| $17,458 $17,723- $17,529 $19,973 $10.083-$17,723 .. $19,973 . . $5,062.69 plus 39.6%Explanation / Answer
Tax is withheld from wages after reducing them by applicable withholding allowance.
A, wages 1687.50.
Withholding for wages over $360 but not over $1,138 is $0 plus 10% of wages over $360. Wages over $360 are $145.90. Thus, withholding amount is $14.59
B.$1953.52
Withholding applicable is $38.80 plus 15% of wages over $484. Thus, withholding is $157.948 ( 38.8 + 15% * (1278.32-484)).
Particulars Amount Amount Wages 1,687.50 Less: withholding allowance Allowances 7.00 Per allowance amount 168.80 Total allowance 1,181.60 Wages subject to withholding 505.90Related Questions
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