Question

Martin is married and claims four exemptions on his W-4. What is his federal income tax withholding under the following condition Assume that his employer uses the percentage method of withholding. Use withholding allowance and percentage method table d. Martin is paid semimonthly, and his gross pay is $2,600 per paycheck. b. Martin is paid monthly, and his gross pay is $4,900 per paycheck. c. Martin is paid weekly, and his gross pay is $3,100 per paycheck. (For all requirements, round your Intermediate computations and final answers to 2 decimal places.) Federal income tax withholdings Federal income tax withholdings Federal income tax withholdings

Answer 1

Answer -

a.	Federal income tax withholdings	$155.41
b.	Federal income tax withholdings	$274.72
c.	Federal income tax withholdings	$406.72

Calculation:

As per given information,

Martin is married and claims four exemptions

a.

Martin is paid semimonthly and his gross pay is $2600

So,

4 exemptions * Withholding allowance = 4 * $172.90 = $691.60 (Total withhold allowances)

= Gross pay - Total withhold allowances

= $2600 - $691.60

= $1908.40

Using the table for married and paid semimonthly wages:

Over	But not over		Of excess over
$1275	$3706	$79.40 plus 12%	$1275

So,

= $1908.40 - $1275

= $633.40

= 12% of $633.40 + $79.40 = $155.41 (Federal income tax withholdings)

b.

Martin is paid monthly and his gross pay is $4900

So,

4 exemptions * Withholding allowance = 4 * $345.80 = $1383.20 (Total withhold allowances)

= Gross pay - Total withhold allowances

= $4900 - $1383.20

= $3516.80

Using the table for married and paid monthly wages:

Over	But not over		Of excess over
$2550	$7413	$158.70 plus 12%	$2550

So,

= $3516.80 - $2550

= $966.80

= 12% of $966.80 + $158.70 = $274.72 (Federal income tax withholdings)

c.

Martin is paid weekly and his gross pay is $3100

So,

4 exemptions * Withholding allowance = 4 * $79.80 = $319.20 (Total withhold allowances)

= Gross pay - Total withhold allowances

= $3100 - $319.20

= $2780.80

Using the table for married and paid monthly wages:

Over	But not over		Of excess over
$1711	$3395	$171.36 plus 22%	$1711

So,

= $2780.80 - $1711

= $1069.80

= 22% of $1069.80 + $171.36 = $406.72 (Federal income tax withholdings)