Question

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

Answer 1

she is paid wages of $2,900.00 monthly.

Table 5. Percentage Method—2017

Amount for One Withholding Allowance Payroll Period

Monthly .......................... 337.50

Number of allowances claimed by the sophie is 2 allowances

1. Total wage payment ........... $2900.00

2. One allowance .............. $337.50

3. Allowances claimed on Form W-4 ... 2

4. Multiply line 2 by line 3 ......... $675

5 Amount subject to withholding (subtract line 4 from line 1) ....... $2225

Tax to be withheld on $2225 from using IRS issued tables

Falls under from 2017 table $969 —$3,354 . tax will be. $77.70 plus 15%

2225 - $ 969 = $ 1256

$ 1256 * 0.15 = 188.4

188.4+77.70 = 266.1

Withhold amount is 266.1