Question

An employee died in February and had total YTD wages in the amount of $1,975.00. The employee was owed wages of $1,900.00, which were paid on a regular semimonthly payday in March. The employee claimed married with one allowance on Form W-4. Using the Wage-Bracket Method, calculate the amount to be withheld from the payment due for federal income, social security, and Medicare taxes.

Answer 1

The amount to be withheld from the payment due for federal income, Social Security, and Medicare taxes can be calculated using the Wage-Bracket Method. For federal income tax, the employee's withholding amount is $0. For Social Security tax, the withholding amount is $122.35, and for Medicare tax, it is $28.64.

Step-by-step explanation:

The amount to be withheld from the payment due for federal income, Social Security, and Medicare taxes can be calculated using the Wage-Bracket Method. Since the employee is claimed as married with one allowance on Form W-4, we can refer to the wage-bracket tables provided by the IRS to determine the appropriate withholding amounts.

For federal income tax, we would need to take into account the employee's wages for the year, which are $1,975.00. We can use the wage-bracket tables to find the appropriate range and corresponding withholding amount. Using the wage-bracket tables for married individuals with one allowance, we find that the employee's withholding amount is $0.

For Social Security and Medicare taxes, the employee pays 6.2% and 1.45%, respectively. Since the total YTD wages for the employee are $1,975.00, we can calculate the withholding amounts as follows:

• Social Security tax: $1,975.00 * 6.2% = $122.35
• Medicare tax: $1,975.00 * 1.45% = $28.64

Therefore, the amount to be withheld from the payment due for federal income tax is $0, for Social Security tax is $122.35, and for Medicare tax is $28.64.