Use the percentage method of withholding, a FICA rate of 6.2%, a Medicare rate o

Question

Use the percentage method of withholding, a FICA rate of 6.2%, a Medicare rate of 1.45%, an SDI rate of 1%, and a state withholding tax of 3.4%. One withholding allowance is $73.08 when paid weekly. Tables for Percentage Method of Withholding TABLE 1-WEEKLY Payroll Period (a) SINGLE person gncluding head of household)- It the amount of wages (after (b) MARRIED person- t the amount of wages (after The amount of Income tax to withhold is The amount of Income ax to withhold is is: Not over $41.. Over- Not over $156 Over- of ercess over- --$158 -$490 $1,515 -$2.900 $4,338 -$7.624 But not over- of ercess over- -$41 -$209 $721 -$1,688 $3,477 -$7,510 But not over $156 $490 $1,515 $2,900 $4,338 $7,624 $41 $209 10% $490 . . . $0.00 plus 10% $0.00 $1680plus 15% -$721 --$1,688 -$3,477. $33 40 plus 15% S187.15 pus 25% $533.40 plus 26% S006.04 p 33% $2,020 42 plus 35% $1,515 .. $2.900 -$4.338 --$7,624 . . . S9360 pius 25% $721 $1,688 $3,477 7.510 pus 28% .. - $2.1 6716plus 35% Larry Calanan has earnings of $520 in a week. He is single and claims 2 withholding allowances. His deductions include FICA, Medicare, federal withholding, state disability insurance, state withholding, union dues of $15, and charitable contributions of $21. Find his net pay. o $379.81 O $397.49 $415.81 $369.34

Explanation / Answer

Gross Salary 520 One Withholding Allowance 73.08 For two withholding allowance 146.16 Deductions not taxable FICA Rate 6.20% 32.24 Medicate Rate 1.45% 7.54 SDI Rate 1% 5.20 State WHl dng 3.40% 17.68 62.66 Charitable Contribution 21.00 Taxabale For two withholding allowance 73.08 Only one allowed Union Dues 15 Taxable Total non taxable 135.74 Balance amount to Tax 384.26 Tax rate and calculation For Single , the rate of Tax is as follows From to Amount 0 41 41 0 0 41 202 161 10% 16.1 209 384 175 15% 26.25 Total Tax 42.35 Total Deductions Tax 42.35 Withholdings 62.66 Union Dues 15 Charitry 21.00 Total 141.01 Nett Salary 378.99

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