Sophie is a single taxpayer. For the first payroll period in October 2015, she i

Question

Sophie is a single taxpayer. For the first payroll period in October 2015, she is paid wages of $3,275 monthly. Sophie claims three allowances on her Form W-4. Click here to access the withholding tables. Table for Allowances Amount per Circular E. Payperiod 2015 Allowance Amount Weekly $ 76.90 Biweekly 153.80 Semimonthly 166.70 Monthly 333.30 Quarterly 1,000.00 Semiannually 2,000.00 Annually 4,000.00 Round intermediate computations and your final answer to two decimal places. a. Use the percentage method to calculate the amount of Sophie's withholding for a monthly pay period. Sophie's withholding: $ Feedback An employer may elect to use any of several methods to determine the amount of the withholding for each individual employee. Most commonly, withholding amounts are determined by use of the percentage method or by use of wage bracket tables. b. Use the withholding tables to determine the amount of Sophie's withholding for the same period. $

Explanation / Answer

Sophie is a single taxpayer, for the first payroll period in October 2013; she is paid wages of$3,250 monthly.

Sophie claims three allowances on her form W-4

Use the percentage method to calculate the amount of Sophie’s withholding for a monthly pay period.

Allowance amount (monthly)       $325

Number of allowances claimed      x 3

Gross wages                             $3,250.00

Less: Amount from above          –975

Withholding base                    $2,275.00

Withholding from percentage tables in Appendix C

(($2,275.00 – $927.00) x 15%) + $74.40 = $276.60

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