Question

Kenneth Friedman's weekly gross earnings for the week ended April 22 were $1,604, and his federal income tax withholding was $288.72. Assuming the social security rate is 6% and Medicare is 1.5%, what is Kenneth's net pay?

Note: If required, round your answer to two decimal places.
$

Bob Dunn's weekly gross earnings for the present week were $2,460. 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.

Answer 1

Ans. 1	Kenneth Gross earning		$1,604
	Less: Federal income tax withholding	$288.72
	social security tax (6% x $1,604)	96.24
	Medicare (1.5% x $1,604)	24.06	$409.02
	Net pay		$1,194.98
Ans. 2	Total wage payment		$2,460
	One allowance (provided by IRS)	$75
	Multiplied by allowances claimed on Form W-4	x 3	225
	Amount subject to withholding		$2,235
	Initial withholding from wage bracket in Exhibit 2		356.9
	Plus additional withholding: 28% of excess over $1,796 *		122.92
	Federal income tax withholding		479.82
	*28% × ($2,235 – $1,796)