Question

Allison is paid $2,795 per week. What is the amount of federal income tax withheld from Allison’s paycheck under the following conditions? Assume that her employer uses the percentage method of withholding. Use withholding allowance and percentage method tables.

https://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/cruz13e/Withholding%20Allowance.JPG

https://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/cruz13e/percentage%20method%20tables..pdf

Required:

1. Allison is single and claims two withholding allowances.
2. Allison is married and claims two withholding allowances.
3. Allison is single and claims no withholding allowance.

Answer 1

	a.)	Wages	2,795.00
		Less: Withholding allowance	161.60	(80.80 x 2 )
		Liable for withholding	2,633.40
		Federal income tax withheld	$ 502.48	{ 276.54 + ( ( 2,633.40 - 1,692 ) x 24% ) }
	b.)	Wages	2,795.00
		Less: Withholding allowance	161.60	(80.80 x 2 )
		Liable for withholding	2,633.40
		Federal income tax withheld	$ 370.15	{ 174.70 + ( ( 2,633.40 - 1,745 ) x 22% ) }
	c.)	Wages liable for with holding	2,795.00
		Federal income tax withheld	$ 541.26	{ 276.54 + ( ( 2,795 - 1,692 ) x 24% ) }