Question

# Sophie is a single taxpayer. For the first payroll period in October 2017, she is paid...

Sophie is a single taxpayer. For the first payroll period in October 2017, she is paid wages of \$2,900.00 monthly. Sophie claims two allowances on her Form W-4.

Table for Allowances Amount per Circular E. Payperiod 2017 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 wage bracket method to determine the amount of Sophie's withholding for the same period. \$

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 a. Allowances for monthly pay as per circular E=337.50 Number of allowances claimed=2 Withholding allowance=2*337.50=675 Gross wages 2900 Less: Withholding allowances 675 Net wages 2225 Net wages falls in the range of 969-3354 range of wages in the monthly payroll table for a single tax payer Sophies withholding=77.70+(3354-2225)*15%=\$247.05 b. Single with two allowance and income between \$2880 and \$2920= \$317 (From wage bracket method table)

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