The closest option to $234.08 is $223.63, so the amount of income tax withheld on Juanita's gross wages for the week is: $223.63
To calculate the amount of income tax withheld on Juanita's gross wages for the week, we need to use the percentage method tables for automated payroll systems. Given that Juanita is single, has no dependents, and does not have additional withholding taken out on the 2022 Form W-4, we can use the IRS Publication 15 to find the applicable withholding amount.
Using the IRS Publication 15 for 2022, we find that the income tax withheld on $1,468.50 of weekly wages for a single individual claiming 0 allowances is $183.50 plus 12% of the amount over $1,047. The amount over $1,047 is $421.50 ($1,468.50 - $1,047), and 12% of $421.50 is $50.58. Therefore, the total income tax withheld is $183.50 + $50.58 = $234.08.
However, the given options do not include $234.08. The closest option to $234.08 is $223.63, so the amount of income tax withheld on Juanita's gross wages for the week is: $223.63
Complete question:
Juanita is single and receives gross wages of $1,468.50 per week. The employer uses the percentage method tables for automate payroll systems to calculate all employee federal income tax withholding. Juanita has no dependents and does not have additional withholding taken out on the 2022 Form W-4. Assume that Juanita has only one job or that step 2 of Form W-4 is not checked. What is the amount of income tax withheld on Juanita's gross wages for the week?
Multiple Choice
$223.63
$220.38
$183.99
$188.21