Question

# Sophie is a single taxpayer. For the first payroll period in October 2017, she is paid...

Sophie is a single taxpayer. For the first payroll period in October 2017, she is paid wages of \$2,900.00 monthly. Sophie claims two allowances on her Form W-4.

Table for Allowances Amount per Circular E.

Payperiod 2017 Allowance Amount

Weekly \$ 77.90

Biweekly 155.80

Semimonthly 168.80

Monthly 337.50

Quarterly 1,012.50

Semiannually 2,025.00

Annually 4,050.00

a. Use the percentage method to calculate the amount of Sophie's withholding for a monthly pay period. Sophie's withholding: \$

b. Use the wage bracket method to determine the amount of Sophie's withholding for the same period. \$

Monthly Gross Wages = \$2,900.00

Pay period 2017 Allowance Amount Monthly 337.50

Sophie claims two allowances

Hence Allowance amount = \$337.50 * 2 = \$675

Gross Wages - Allowances = \$2,900 - \$675 =\$2,225

Using the percentage method to calculate the amount of Sophie's withholding for a monthly pay period. Sophie's withholding = \$77.70 plus 15% of amount over \$969 = \$77.70 + 15% * (\$2,225 - \$969) = \$266.10

Using the percentage method to calculate the amount of Sophie's withholding for a monthly pay period. Sophie's withholding = \$266.10

Filing status: Single

Monthly wages

Two allowances

Using the wage bracket method to determine the amount of Sophie's withholding for the same period for monthly salary of \$2,900 with two allowances = \$266

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