Question

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.

Click here to access the withholding tables.

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

Round intermediate computations and your final answer to two decimal places.

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.
$

Answer 1

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