Question

The primary difference between the percentage method and the wage-bracket method of withholding federal income tax is:

a.they are simply different ways to calculate tax; both consider marital status and take into account the standard deduction.

b.the percentage method does not take into account the standard deduction.

c.the wage-bracket method is much more complicated.

d.the percentage method does not differentiate between married and unmarried.

Answer #1

**Your required answer is option a**

**Explanation:**

**Percentage method and wage-bracket mthod of withholding
federal income tax both use different way to calculate tax and both
consider marital status and take into account the standard
deduction.**

**Generally percentage method helps in organization where
payroll system is automated whereas where payroll system is mannual
there wage-bracket method is more helpful.**

**I hope this clear your doubt.**

**Feel free to comment if you still have any query or need
something else. I'll help asap.**

**Do give a thumbs up if you find this
helpful.**

Use (a) the percentage method and (b) the wage-bracket method to
compute the federal income taxes to withhold from the wages or
salaries of each employee. Enter all amounts as positive
numbers. Round your calculations and final answers to the nearest
cent.
Click here to access the Table of Allowance Values.
Click here to access the Percentage Method Tables.
Click here to access the Wage-Bracket Method Tables.
Amount to Be
Withheld
Employee
Marital
Status
No. of Withholding
Allowances
Gross Wage...

1. Determine the amount of weekly federal
income tax to be withheld using the wage bracket method. Scroll to
view all tables on the page.
Gross Earning
Marital Status
Allowances
Amount
$469.90
Single
3
$
2.
Round your answer to the nearest cent.
Compute Medicare using 1.45%.
Gross Earnings
Medicare
$408.11
$
3.
Round your answer to the nearest cent.
Calculate the state income tax for the following employee using
a 4.5% state income tax rate.
Employee
Earnings This
Pay...

Under which circumstances could the percentage method be used to
determine federal income tax withholding amounts? (You may
select more than one answer. Single click the box with the question
mark to produce a check mark for a correct answer and double click
the box with the question mark to empty the box for a wrong answer.
Any boxes left with a question mark will be automatically graded as
incorrect.)
When using a computerized accounting system to compute payroll
deductions.unanswered...

Example 4-3 To use the wage-bracket method, follow the steps
illustrated below. Step 1 Select the withholding table that applies
to the employee's marital status and pay period. ➡ Adrienne Huff is
married and claims 3 allowances. She is paid weekly at a rate of
$815. Step 2 Locate the wage bracket (the first two columns of the
table) in which the employee's gross wages fall. ➡ Locate the
appropriate wage bracket (see Figure 4.7): At least $810 but less...

The percentage method is used when an employee's wages exceed
the Publication 15 tables provided. The process for this method is
to take the earnings, subtract the allowances the employee declared
on their W-4 which results in the wages upon which taxes will be
computed.
Table of Allowance Values for
2019
Weekly
80.80
Biweekly
161.50
Semimonthly
175.00
Monthly
350.00
Quarterly
1,050.00
Semiannual
2,100.00
Annual
4,200.00
Daily/Misc.
16.20
Complete the following. The Percentage Method must be
used for a single employee,...

1. Federal Income Tax Withholding
Bob Dunn's weekly gross earnings for the present week were
$2,310. Dunn has three exemptions. Using the wage bracket
withholding table in Exhibit 2 with a $75 standard withholding
allowance for each exemption, what is Dunn's federal income tax
withholding? Round your answer to two decimal places.
$
2. Employee Net Pay
Steven Friedman's weekly gross earnings for the week ended April
22 were $1,906, and his federal income tax withholding was $343.08.
Assuming the...

2013 Individual
Tax Rates
Single
Individuals
If a Corporation's Taxable Income Is
It Pays This
Amount on the
Base of the Bracket
Plus This Percentage
on the Excess over the
Base (Marginal Rate)
Average Tax
Rate at
Top of Bracket
Up to $8,925
$0
10.0%
10.0%
$8,925 - $36,250
892.50
15.0
13.8
$36,250 - $87,850
4,991.25
25.0
20.4
$87,850 - $183,250
17,891.25
28.0
24.3
$183,250 - $398,350
44,603.25
33.0
29.0
$398,350 - $400,000
115,586.25
35.0
29.0
Over $400,000
116,163.75
39.6...

2013 Individual Tax Rates
Single Individuals
If a Corporation's Taxable Income Is
It Pays This
Amount on the
Base of the Bracket
Plus This Percentage
on the Excess over the
Base (Marginal Rate)
Average Tax
Rate at
Top of Bracket
Up to $8,925
$0
10.0%
10.0%
$8,925 - $36,250
892.50
15.0
13.8
$36,250 - $87,850
4,991.25
25.0
20.4
$87,850 - $183,250
17,891.25
28.0
24.3
$183,250 - $398,350
44,603.25
33.0
29.0
$398,350 - $400,000
115,586.25
35.0
29.0
Over $400,000
116,163.75
39.6...

Note: In this
chapter and in all succeeding work throughout the course,
unless instructed otherwise, calculate
hourly rates and overtime rates as follows:
1.
Carry the hourly rate and the overtime rate to 3
decimal places and then round off to 2 decimal places (round the
hourly rate to 2 decimal places before multiplying by one and
one-half to determine the overtime rate).
2.
If the third decimal place is 5 or more, round to
the next higher cent.
3....

Note: This problem is for the 2018 tax year.
David R. and Ella M. Cole (ages 39 and 38, respectively) are
husband and wife who live at 1820 Elk Avenue, Denver, CO 80202.
David is a self-employed consultant specializing in retail
management, and Ella is a dental hygienist for a chain of dental
clinics.
David earned consulting fees of $145,000 in 2018. He maintains
his own office and pays for all business expenses. The Coles are
adequately covered by the...

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