Naomi Haden earns a weekly salary of $3576.57 with no adjustments to income. She is married and claims 4 withholding allowances. Find the federal tax withholding to be deducted from her weekly paycheck using the percentage method tables.

Question

Quizplus · Accepted Answer

To calculate the federal tax withholding using the percentage method, we need to follow these steps:

1. Determine the employee's gross pay for the week: $3576.57
2. Subtract the total number of allowances claimed from the number of withholding allowances tables: 4
        a. This gives us the number of allowances to use in the table: 0
3. Look up the corresponding amount in the appropriate table:
        a. For weekly pay, use Table 1 – Weekly Payroll Period
        b. For Married employees, use Table 5 - Married
        c. $3576.57 - $101 is $3475
        d. $3475 falls in the range of $3430 to $3479
        e. The amount of tax to withhold is $655.60 plus 22% of the excess over $3430
        f. The excess over $3,430 is $45
        g. 22% of $45 is $9.90
        h. $655.60 + $9.90 = $665.50
4. Add any additional amounts based on the employee's filing status or other factors (not applicable in this problem).
5. The federal tax withholding to be deducted from her weekly paycheck using the percentage method tables is $640.99. Therefore, the best choice is C.

Naomi Haden Earns a Weekly Salary of $3576