Question

Example 4-3 To use the wage-bracket method, follow the steps illustrated below. Step 1 Select the withholding table that applies to the employee's marital status and pay period. ➡ Adrienne Huff is married and claims 3 allowances. She is paid weekly at a rate of $815. Step 2 Locate the wage bracket (the first two columns of the table) in which the employee's gross wages fall. ➡ Locate the appropriate wage bracket (see Figure 4.7): At least $810 but less than $821 Step 3 Follow the line for the wage bracket across to the right to the column showing the appropriate number of allowances. Withhold this amount of tax. ➡ Move across the line to the column showing 3 allowances. The tax to withhold is $35. Sean Matthews is a waiter at the Duluxe Lounge. In his first weekly pay in March, he earned $300.00 for the 40 hours he worked. In addition, he reports his tips for February to his employer ($500.00), and the employer withholds the appropriate taxes for the tips from this first pay in March. Calculate his net take-home pay assuming the employer withheld federal income tax (wage-bracket, single, 3 allowances), social security taxes, and state income tax (1%). Enter deductions beginning with a minus sign (-). Round interim amounts to two decimal places. Use these values in subsequent computations then round final answer to two decimal places

Gross pay

Federal income tax

Social security taxes - OASDI

Social security taxes HI

State income tax

Net pay

Answer 1

Computation of net take - home pay

PARTICULARS	AMOUNT
GROSS PAY	300
FEDERAL INCOME TAX ON 800 (500+300)	-59
SOCIAL SECURITY TAXES- OASDI(6.2%*800)	-49.60
SOCIAL SECURITY TAXES-HI(1.45%*800)	-11.60
STATE INCOME TAX(2%*800)	-16
NETPAY	163.80

****************************************************************************************                                                            
Please upvote ,comment incase any doubt , feel free to comment ,thank you.....