Question

Penny is paid a gross wage of $2,648.00 on a monthly basis. She is single and is entitled to 2 withholding allowances. How much income tax, social security, and Medicare will be withheld based on the combined wage bracket tables in Exhibits 9-3 and 9-4 from your text

Answer 1

The combined wage bracket tables in Exhibits 9-3 and 9-4 is missing hence I will use 2014 tax year

answer :

a) Federal income tax withheld

= 75.6 + ( 1989.60 - 944 )*15% = $232.44

b) social security

6% * 1989.6 = $119.38

c) Medicare

1.45% * 1989.6 = $28.85

Step-by-step explanation:

For a single individual

Two withholding allowance = $329.20 * 2 = $658.40

Gross Pay = $2648

withholding allowance = $658.40

Subject to withholding = $2648 - $658.40 = $1989.60

a) Federal income tax withheld

= 75.6 + ( 1989.60 - 944 )*15% = $232.44

b) social security

6% * 1989.6 = $119.38

c) Medicare

1.45% * 1989.6 = $28.85