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Chapter 11 Current Liabilities and Payroll 531 PE 11-2B Federal income tax withholding Marsha Mellows weekly gross earninos
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Answer #1

Solution:

Federal Income Tax With-Holding = $ 204.95

Gross Earnings for the week $           1,250.00
Standard Withholding Allowance $              (75.00)
Taxable Earnings $           1,175.00

Federal Income Tax With-Holding = $ 95.95 + 25% of ( $ 1,175 - $ 739 ) = $ 204.95

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