Question

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.

Click here to access the withholding tables.

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

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.	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)