Question

Rhonda Brennan found her first job after graduating from college through the classifieds of the Miami Herald. She was delighted when the offer came through at $14.70 per hour. She completed her W-4 stating that she is married with a child and claims an allowance of 3. Her company will pay her biweekly for 80 hours (assume a tax rate of 6.2% on $128,400 for Social Security and 1.45% for Medicare). Calculate her take-home pay for her first check. (Use Table 9.1 and Table 9.2)

TABLE 9.1 Percentage method income tax withholding allowances Payroll Period Weekly ......... Biweekly ....... Semimonthly Monthly ............. Quarterly .... . Semiannually Annually........ Daily or miscellaneous (each day of the payroll One Withholding Allowance $ 79.80 159.60 172.90 345.80 1,037.50 2,075.00 4,150.00 period) . . . . . . . . . . . . . . . . . . . . . . . . . 16.00

Answer 1

Gross pay	1176.00	=80*14.70
Less: Withholding allowances	478.80	=159.60*3
Taxable pay	697.20
Federal Income tax withholding	25.32	=(697.20-444)*10%
Gross pay		1176.00
Less: Deductions
Federal Income tax withholding	25.32
Social Security tax	72.91		=1176*6.2%
Medicare tax	17.05		=1176*1.45%
Total Deductions		115.28
Take-home pay for her first check		1060.72