Question 6.4.5: Ben Fisher is a single architect who claims two exemptions. ......
Ben Fisher is a single architect who claims two exemptions. He has semimonthly (twice a month) gross earnings of $4430. Use the percentage method to find the amount of withholding for each paycheck.
One withholding allowance for semimonthly is $168.80.
Number of allowances × Amount for one allowance = 2 × $168.80 = $337.60
Gross earnings – Amount from above = $4430 – $337.60 = $4092.40
Use the table for semimonthly payroll and single. Go to the row of over $3,892 but not over $8,017.
Withholding = $773.30 + 28% of excess over $3,892
= $773.30 + .28 × ($4092.40 – $3,892)
= $829.41
| TABLE 3—SEMIMONTHLY Payroll Period | |
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(b) MARRIED person— If the amount of wages (after subtracting withholding The amount of income tax allowances) is: to withhold is: Not over $356 . . . . . . . . . . . . . . $0 Over— But not over— of excess over— $356 —$1,129 . . . $0.00 plus 10% —$356 $1,129 —$3,494 . . . $77.30 plus 15% —$1,129 $3,494 —$6,685 . . . $432.05 plus 25% —$3,494 $6,685 —$10,000 . . . $1,229.80 plus 28% —$6,685 $10,000 —$17,579 . . . $2,158.00 plus 33% —$10,000 $17,579 —$19,813 . . . $4,659.07 plus 35% —$17,579 $19,813 . . . . . . . . . . . . . . . . $5,440.97 plus 39.6% —$19,813 |
(a) SINGLE person (including head of household)— If the amount of wages (after subtracting withholding The amount of income tax allowances) is: to withhold is: Not over $94 . . . . . . . . . . . . . . . $0 Over— But not over— of excess over— $94 —$480 . . . $0.00 plus 10% —$94 $480 —$1,663 . . . $38.60 plus 15% — $480 $1,663 —$3,892 . . . $216.05 plus 25% —$1,663 $3,892 —$8,017 . . . $773.30 plus 28% —$3,892 $8,017 —$17,317 . . . $1,928.30 plus 33% —$8,017 $17,317 —$17,388 . . . $4,997.30 plus 35% —$17,317 $17,388 . . . . . . . . . . . . . . . . $5,022.15 plus 39.6% —$17,388 |