Kenneth Karcher's withholding is $81.20, Mary Kenny's is $253.12, and Thomas Carney's is $209.90 based on their biweekly wages and the IRS Percentage Method Tables for the year 2023.
To calculate the amount to withhold from each employee's wages using the percentage method, you can follow these steps:
1. Determine the employee's marital status and allowances.
2. Find the biweekly wage brackets and corresponding percentage rates in the IRS Percentage Method Tables.
For the year 2023, the percentage method tables are as follows:
Biweekly Payroll Period
(attached)
Calculation
a. Kenneth Karcher:
- Marital Status: Single
- Allowances: 1 allowance = $153.80
- Wages: $895
Find the percentage from the table:
- $895 falls in the range between $83 and $329.
- Percentage = $0.00 plus 10.00% of the excess over $83.
Calculation: $0.00 + 10.00% * ($895 - $83)
Withholding Amount for Kenneth Karcher = $0.00 + 10.00% * $812 = $81.20
b. Mary Kenny:
- Marital Status: Married
- Allowances: 2 allowances = $307.60
- Wages: $1,900
Find the percentage from the table:
- $1,900 falls in the range between $1,963 and $3,935.
- Percentage = $269.60 plus 24.00% of the excess over $1,963.
Calculation: $269.60 + 24.00% * ($1,900 - $1,963)
Withholding Amount for Mary Kenny = $269.60 + 24.00% * (-$63) = $253.12
c. Thomas Carney:
- Marital Status: Single
- Allowances: 0 allowances
- Wages: $1,460
Find the percentage from the table:
- $1,460 falls in the range between $915 and $1,963.
- Percentage = $84.00 plus 22.00% of the excess over $915.
Calculation: $84.00 + 22.00% * ($1,460 - $915)
Withholding Amount for Thomas Carney = $84.00 + 22.00% * $545 = $209.90
So, the withholding amounts are:
- Kenneth Karcher: $81.20
- Mary Kenny: $253.12
- Thomas Carney: $209.90
The complete question is:
Calculate the amount to withhold from the following employees using the biweekly table of the percentage method.
a. Kenneth Karcher (single, 1 allowance = $153.80), $895 wages.
b. Mary Kenny (married, 2 allowances = $307.60), $1,900 wages.
c. Thomas Carney (single, 0 allowances), $1,460 wages.