Question

Lauprechta Incorporated has the following employees on payroll. Assume that all the employees has only one job or that step 2 of Form W-4 is not checked and all dependents are under the age of 17 Also, the employer uses the Percentage Method Tables for Manual Payroll Systems with Forms W 4 from 2020 or Later Use percentage method tables for a manual payroll systems. Required: Complete the table for taxes to be withheld for each pay period Note: Round your intermediate computotions ond final answers to 2 decimal places.

Answer 1

In the given problem, the total tax of the employees are:

• Naila- $1,029.70
• Wilfred- $672.50
• Byron- $494.63
• Annie- $562.88

• Total- $2,759.71

How is that so?

To calculate the total taxes to be withheld for each pay period for the employees in the problem, we will use the Percentage Method Tables for Manual Payroll Systems with Forms W-4, from 2020 or Later.

Calculate the gross pay per pay period.

| Employee | Semimonthly Payroll |

| Naila | $7,600 |

| Wilfred | $5,360 |

| Byron | $3,960 |

| Annie | $4,560 |

Look up the withholding tax amount in the Percentage Method Tables.

To use the Percentage Method Tables, we need to know the employee's gross pay per pay period, the number of withholding allowances, and the employee's marital status.

Naila

Gross pay per pay period: $3,800

Number of withholding allowances: 3

Marital status: Married

Looking up the withholding tax amount in the Percentage Method Tables, we find that Naila's federal withholding tax should be $742.00 per pay period.

Wilfred

Gross pay per pay period: $2,680

Number of withholding allowances: 2

Marital status: Married

Looking up the withholding tax amount in the Percentage Method Tables, we find that Wilfred's federal withholding tax should be $467.00 per pay period.

Byron

Gross pay per pay period: $1,980

Number of withholding allowances: 0

Marital status: Single

Looking up the withholding tax amount in the Percentage Method Tables, we find that Byron's federal withholding tax should be $344.00 per pay period.

Annie

Gross pay per pay period: $2,280

Number of withholding allowances: 1

Marital status: Single

Looking up the withholding tax amount in the Percentage Method Tables, we find that Annie's federal withholding tax should be $388.00 per pay period.

Calculate the Social Security and Medicare taxes.

The Social Security tax rate is 6.2% and the Medicare tax rate is 1.45%.

Naila

Social Security tax: $3,800 * 6.2% = $233.60

Medicare tax: $3,800 * 1.45% = $54.10

Wilfred

Social Security tax: $2,680 * 6.2% = $166.56

Medicare tax: $2,680 * 1.45% = $38.94

Byron

Social Security tax: $1,980 * 6.2% = $121.96

Medicare tax: $1,980 * 1.45% = $28.67

Annie

Social Security tax: $2,280 * 6.2% = $141.76

Medicare tax: $2,280 * 1.45% = $33.12

Calculate the total taxes withheld.

To calculate the total taxes withheld, we add the federal withholding tax, the Social Security tax, and the Medicare tax.

Naila

Total taxes withheld: $742.00 + $233.60 + $54.10 = $1,029.70

Wilfred

Total taxes withheld: $467.00 + $166.56 + $38.94 = $672.50

Byron

Total taxes withheld: $344.00 + $121.96 + $28.67 = $494.63

Annie

Total taxes withheld: $388.00 + $141.76 + $33.12 = $562.88