Final answer:
Income tax withholding for David Grange is calculated by subtracting the value of withholding allowances from his gross biweekly pay to determine taxable income, then applying the tax rates provided in Exhibit 9-1 and Exhibit 9-2. An illustrative calculation would involve a base tax plus a percentage of the income over a certain threshold, but without the specific exhibits, precise withholding cannot be completed.
Step-by-step explanation:
To calculate the income tax withholding for David Grange, who is married and claims 4 withholding allowances, being paid biweekly and earning $1,844 per pay period, we must follow the percentage method of income tax calculation as represented in Exhibit 9-1 and Exhibit 9-2. While I do not have access to these exhibits, the general procedure would involve subtracting allowances from the gross pay to determine the taxable income and then applying the corresponding tax rate. An example of this method would be if David's taxable income was determined to be $20,000, according to the information provided, then his tax liability would be calculated as '837.50 + 0.15 × (20,000 - 8,375)', which equates to $2,581.25.
This formula illustrates that David's tax liability would be the sum of a base tax amount plus a percentage of income over a threshold level. To determine the exact withholding per pay period, calculations would need to follow the specific tax table pertinent to his pay and allowances.
Notably, allowances are used to adjust the amount of tax withheld from a paycheck, with each allowance effectively reducing the amount of taxable income. For accurate calculations, it's important to refer to the current tax year's IRS guidelines and tax rates, considering the impact of any deductions David may be eligible for.