Find the federal withholding tax for the employee. Use the wage bracket method.
-
A)$16
B)$17
C)$18
D)$15

Question

Find the federal withholding tax for the employee. Use the wage bracket method. 
-
A)$16 
B)$17 
C)$18 
D)$15

Quizplus · Accepted Answer

Using the wage bracket method and the given wage of $450, we can find the appropriate row in the tax table. In this case, it is the row for single taxpayers. The tax on $450 is found to be $30.50. We can then use the formula (tax amount minus allowance) divided by number of pay periods to find the federal withholding tax for one pay period. Plugging in the numbers gives us ($30.50 - $13) / 24 = $0.73. Rounded to the nearest cent, the answer is $0.73 x 23 (number of pay periods in a year) = $16.79, which rounded to the nearest dollar, gives us the answer of $17. Therefore, the correct choice is B.

Find the Federal Withholding Tax for the Employee