Question

Sophie is a single taxpayer. For the first payroll period in July 2019, she is paid wages of $2,200 monthly. Sophie claims one allowance on her Form W-4. Click here to access the withholding tables. Table for Allowances Amount per Circular E. Payperiod 2019 Allowance Amount

Weekly $ 80.80

Biweekly 161.50

Semimonthly 175.00

Monthly 350.00

Quarterly 1,050.00

Semiannually 2,100.00

Annually 4,200.00

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 wage bracket method to determine the amount of Sophie's withholding for the same period.$________

Answer 1

a. Total wage payment = $2,200

One allowance = $350

Amount subject to withholding = $2,200 - $350 = $1,850

Tax to be withheld on $1,850 from Table 1 - single person, page 46 = $167.8

Sophie's withholding using the percentage method = $167.8

b. Total wage payment = $2,200

Tax to be withheld on $2,200 from Table "Wage Bracket Method Tables for Income Tax Withholding SINGLE Persons—MONTHLY Payroll Period" Page 61 is $166.

Sophie's withholding using the wage bracket method = $166