Question

QS 11-13A Federal income tax withholdings P5 Organic Farmers Co-Op has three employees and pays them weekly. Using the withholding bracket table in © Exhibit 11A.6, determine each employee's federal income tax withholding. 1. Maria earns $735 per week and claims three withholding allowances. 2. Jeff earns $607 per week and claims five withholding allowances. 3. Alicia earns $704 per week and does not claim any withholding allowances. EXHIBIT 11A.6 Wage Bracket Withholding Table SINGLE Persons-WEEKLY Payroll Period If the wages are- And the number of withholding allowances claimed is- But less 0 1 2 3 5 6 7 8 9 10 At least than The amount of income tax to be withheld is- 4 $600 $610 620 610 620 630 640 ON LOOD OF COVOULAWN-00 0000

Answer 1

1. Maria earns $735 per week. Hence her wages are at least 730 but less than 740. We need to look in that row of $730 but not more than $740. Since she claims 3 withholding allowances, so column with the number 3 mentioned is relevant. The amount of income tax to be withheld will be $68.

2. Jeff earns $607 per week. Hence his wages are at least 600 but less than 610. We need to look in that row of $600 but not more than $610. Since he claims 5 withholding allowances, so column with the number 5 mentioned is relevant. The amount of income tax to be withheld will be $30.

3. Alicia earns $704 per week. Hence her wages are at least 700 but less than 710. We need to look in that row of $700 but not more than $710. Since she claims 0 withholding allowances, so column with the number 0 mentioned is relevant. The amount of income tax to be withheld will be $101..