Question

Use the following information to answer the next seven questions.

The following 2 employees are PAID monthly and this is the last payday of the year (Dec).
Each employee’s taxable part of their wages is listed below. Prior wages are only needed for FUTA purposes.
The company is located in Henry County, IN and has a SUTA rate of 2%
1. Sally – has worked the entire year
Dec. gross pay $13,150
Federal taxable: $11,700
Social Security taxable: $ 7,200
Medicare taxable: $12,200
Married (spouse works and checks part 2 of W4, item 3 total $4,000)
Lives in Delaware County, IN (cty rate = 1.5%)
Use the attached Pub 15T to help solve this and the next question. Publication 15T - 2022Download Publication 15T - 2022 -------------------------------------------------------------------------------------
How much in Federal withholding taxes should be deducted from Sally's check

Answer 1

Sally's estimated Federal withholding tax, given the hypothetical flat rate of 15%, would be $1,755 based on her federal taxable income of $11,700.

Step-by-step explanation:

To determine how much Federal withholding tax should be deducted from Sally's paycheck, one would normally refer to the IRS Publication 15-T for the appropriate year to find the withholding tables and methods that apply to her income and filing status. However, given the details provided in the question, we can apply hypothetical rates to estimate the deductions. Since Sally has a federal taxable income of $11,700 and is married, we will assume a flat rate of 15% for federal and state taxes as per the problem's instructions, although in practice, the rate might differ based on her actual filing status and the total number of allowances and deductions she claims.

Therefore, Sally's estimated Federal withholding tax would be:
15% of her federal taxable income of $11,700, which equals $1,755.