Calculate federal and state income tax withholding for a number of employees of TCLH Industries, a manufacturer of cleaning products. Use the wage-bracket method when it is possible to do so, and use the percentage method in all other instances. Assume the state income tax withholding rate to be 5% of taxable pay (which is the same for federal and state income tax withholding). 4)Michael Sierra contributes $50 to a flexible spending account each period. He is married, claims four federal withholding allowances and three state withholding allowances, and his weekly gross pay was $2,450. The year is 2021. Federal income tax withholding=$___ State income tax withholding=$120.00

Calculate federal and state income tax withholding for a number of employees of TCLH Industries, a manufacturer of cleaning products. Use the wage-bracket method when it is possible to do so, and use the percentage method in all other instances. Assume the state income tax withholding rate to be 5% of taxable pay (which is the same for federal and state income tax withholding). 4)Michael Sierra contributes $50 to a flexible spending account each period. He is married, claims four federal withholding allowances and three state withholding allowances, and his weekly gross pay was $2,450. The year is 2021. Federal income tax withholding=$___ State income tax withholding=$120.00

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter9: Payroll, Estimated Payments, And Retirement Plans

Section: Chapter Questions

Problem 13P

See similar textbooks

Similar questions

John Moyer (married; 6 federal withholding allowances) earned monthly gross pay of $3,150. He participates in a flexible spending account, to which he contributes $265 during the period.Using wage-bracket method: Federal income tax withholding = $Using percentage method: Federal income tax withholding = $
Thomas is an employer with two employees, Patty and Selma. Patty's wages are $12,450 and Selma's wages are $3,110. The state unemployment tax rate is 5.4 percent. Calculate the following amounts for Thomas: Round your answer to two decimal places. a. FUTA tax before the state tax credit $fill in the blank 1 b. State unemployment tax $fill in the blank 2 c. FUTA tax after the state tax credit
You are the payroll manager for a resort. Your daughter (Ellen Boxwood) is the marketing director earning a salary of $40,800 per year, payable monthly. She is married and claims three withholding allowances. Her social security number is 555-55-5555. In addition to federal income tax, social security, and Medicare, Ellen pays 2.3% state income tax, 1 2 % for state disability insurance (both based on gross earnings), $35.63 for term life insurance, $135.28 to the credit union, and $30 to the United Way. Fill out the following payroll voucher for Ellen for the month of October. (Use Exhibit 9-1 and Exhibit 9-2 from your text. Social Security Tax is 6.2% of gross wages up to $128,400. Medicare Tax is 1.45% of all gross wages. ) Payroll Voucher Employee: Tax Filing Status: SSN: Withholding Allowances: Full-time Pay Period From to Primary Withholdings: Additional Withholdings: Federal income tax $ Term life $ Social Security…
Mary Smith earned her four-year degree and is in her first year of consulting for a law firm. Her monthly gross income is $4,155.00. She has the following taken out of her gross income: Social Security, Medicare, State Disability Insurance of 1%, State Withholding Tax of 2.64%, and Federal Withholding Tax using the percentage method. She Federal Withholding Tax. She also makes a $15.00 contribution to American Society for the Prevention of Cruelty to Animals and a $50.00 contribution to the Salvation Army. a. How much are Mary’s FICA taxes? b. How much is her State Disability Insurance? c. How much is her State Withholding Tax? d. How much is her Federal Withholding Tax? e. What is Mary’s monthly net earnings?
1. Anderson Brown worked 39 hours during the first week of the calendar year and earns regular wages of $15/hour. She contributes 4% of gross pay to a 401(k) plan and $25/week to a dependent-care flexible spending account. Her Social Security tax for the week is $_____ . 2. Which statement about calculating taxable earnings for Social Security tax is accurate? Answer: A. 401(k) contributions are taxable for Social Security tax and are subtracted from gross pay when calculating taxable earnings for that tax. B. 401(k) contributions are taxable for Social Security tax and are not subtracted from gross pay when calculating taxable earnings for that tax. C. 401(k) contributions are not taxable for Social Security tax and are subtracted from gross pay when calculating taxable earnings for that tax. D. 401(k) contributions are not taxable for Social Security tax and are not subtracted from gross pay when…
Required: Compute the net pay for Eve Khan and Marn Hart. Assume that they are paid a $2.710 salary biweekly, subject to federal income tax (use the wage-bracket method) in Appendix C and FICA taxes, and have no other deductions from their pay. They have a state tax rate of 3 percent. If they choose to participate in the cafeteria plan, the deduction for the pay period is $100; otherwise, there is no deduction for the cafeteria plan. The cafeteria plan qualifies under Section 125. You do not need to complete the number of hours. Additional information for Eve: Box 2 is not checked, and the dependents are under 17. Note: Round your Intermediate calculations and final answers to 2 decimal places. Name Eve Khan-no cafeteria plan Eve Khan-cafeteria plan Marn Hart-no cafeteria plan Marn Hart-cafeteria plan Name Eve Khan-no cafeteria plan Eve Khan-cafeteria plan Marn Hart-no cafeteria plan Mar Hart-cafeteria plan Filing Status Gross Earnings MJ MJ S S $ $ $ Dependents $ 2.710.00 $ 2,710.00…
Organic Farmers Cooperative has three employees and pays them weekly. Using the withholding bracket table in Exhibit 11A.6, determine each employee's federal income tax withholding. 1. Maria earns $705 per week and claims three withholding allowances. 2. Jeff earns $637 per week and claims five withholding allowances. 3. Alicia earns $665 per week and does not claim any withholding allowances. Employee Maria Jeff Alicia Federal Income Tax Withholding
[The following information applies to the questions displayed below.] Sarah is a cash-method, calendar-year taxpayer, and she is considering making the following cash payments related to her business. Calculate the after-tax cost of each payment assuming she is subject to a 37 percent marginal tax rate. Note: Do not round intermediate calculation. Problem 9-54 Part-b (Algo) b. $4,600 to reimburse the cost of meals at restaurants incurred by employees while traveling for the business.
3. Jordan Peters (single; 3 federal withholding allowances) earned monthly gross pay of $2,300. He contributes $150 to a flexible spending account during the period. Using wage-bracket method: Federal income tax withholding=$ Using percentage method: Federal income tax withholding=$
Liburd LLC has two employees Thomas and Marsha who are paid $ !5,500 and $2, 500 respectively. If the State unemployment tax rate is 5.4, what is (i) the amount of the total FUTA tax before the State unemployment tax (ii) the amount after the State tax credit
Organic Farmers Co-Op has three employees and pays them weekly. Using the withholding bracket table in Exhibit 9A.6, determine each employee’s federal income tax withholding.1. Maria earns $716 per week and claims three withholding allowances.2. Jeff earns $639 per week and claims five withholding allowances.3. Alicia earns $673 per week and does not claim any withholding allowances.
Use the appropriate table to determine the amount to withhold for federal income tax from each of the following biweekly wages (biweekly withholding allowance = $159.60): Patrick Patrone (single, 2 allowances), $925 wages $ Carson Leno (married, 4 allowances), $1,195 wages $ Carli Lintz (single, 0 allowances), $700 wages $ Gene Hartz (single, 1 allowance), $2,500 wages $ Mollie Parmer (married, 2 allowances), $3,600 wages $ Wage Bracket Method Tables for Income Tax Withholding SINGLE Persons—BIWEEKLY Payroll Period(For Wages Paid through December 31, 2018) And the wages are– And the number of withholding allowances claimed is— At least But less than 0 1 2 3 4 5 6 7 8 9 10 The amount of income tax to be withheld is— $250260270 $260270280 $111213 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 280290300310320 290300310320330 1415161718 00012 00000 00000 00000 00000 00000 00000 00000 00000 00000…