Question

5. Matt Jones' gross pay for this week is $560.00. He is single

and claims 3 allowances. Using the percentage method of

withholding, what amount will be withheld from Matt's pay

for federal income tax?

Answer 1

Federal Income Tax

Explanation:

I will give you the answer in the following steps. In addition to solving this exercise it is necessary the table found in the attachments -And that was probably in the book where this exercise is taken-.

Here we have:

Percentage Method of Withholding –Single Person

Each Weekly Allowance = $63.46

Step 1:

= ∙

=3*$63.46

= $190.38

Step 2:

=−

=$560.00- $190.38

=369.62 US$

Step 3: (Here we refer to the table, as the income is less than $ 645, and more than $ 195, the tax is 14.40 plus 15% for being the income above $ 195)

ℎℎ=$14.40+[15%*($369.62−195)]

ℎℎ= $40.59