Question

OVER 3,313 BUT NOT OVER 7,754.......429.75 PLUS 25%-------3,313

OVER 960 BUT NOT OVER 3,313......76.80 PLLUS 15%------960

OVER 192 BUT NOT OVER 960......0.00 PLUS 10%------192

A single person MONTHLY

Well I know for Monthly its 333.30 on the Payroll Period FOR ONE WITHHOLDING ALLOWANCE

10. Pete Lowe, who is single and paid monthly, earns $3,300 per month. He claims a withholding allowance of one. How much FIT is deducted from his paycheck using the percentage method?

Answer 1

Withholding allowance is actually $337.5 for 2017 and 345.8 for 2018 but as you say i am solving using 333.30 withholding allowance.

1. First, subtract $333.30 from $3300 to get $2966.7

2. Using your given table, we find that $2966.7 falls in the “Over $960 but not over $3313” range. Look at the amount to withhold for this range.

3. The amount of income tax you must withhold for this range is $76.80, plus 15% of excess over $960.

4. Subtract $960 from $2966.7 to determine the excess, which is $2006.7. Then, multiply that number by 15%, which is 0.15. After, you must add that number to the flat rate of $76.80

2966.7 - 960 = 2006.7

2006.7 × 0.15 = $301

$301 + $76.8 = 377.8

Therefore,

You must withhold $377.8 from the employee’s wages for federal income tax.

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