Question

Sophie is a single taxpayer. For the first payroll period in October 2016, she is paid...

Sophie is a single taxpayer. For the first payroll period in October 2016, she is paid wages of \$3,280.50 monthly. Sophie claims three allowances on her Form W-4.

Table for Allowances Amount per Circular E.

 Payperiod 2016 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 withholding tables to determine the amount of Sophie's withholding for the same period.
\$

Pecentage Method:

 Total wage Payment 3,280.50 Deduction for Allowance: One Allowance 377.50 No. Allowance claimed in Form W-4 3.00 1,132.50 Amount subject to withholding 2,148.00 Tax to be withhold: \$77.20 plus 15% of excess over \$960 255.40

Wage Bracket Method:

Table Applicable to single person with monthly payroll period is referred.

Applicable Range of Wages:Atleast 3280 but less than 3320'

Witholding tax is \$276