Payroll: Wage Bracket/Percentage method calculations

Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee. Assume all the employees have W-4 Forms prior to 2020

Payroll Practice and Management
Lesson 11 Assignment
Lesson 11 Assignment
Instructions:
This assignment consists of three problems. Read each question carefully, show your work if needed,
and then upload your file to submit it for grading. Be sure to save your file using this naming protocol:
Lesson number_first intial lastname (example: L11_jsmith.doc).
1. Use (a) the percentage method and (b) the wage-bracket method to compute the federal
income taxes to withhold from the wages or salaries of each employee. Assume all the
employees have W-4 Forms prior to 2020. Use the tables in IRS Publication 15-T.
Employee
Marital
Status
No. of
Withholding
Allowances
Corn, A.
S
Fogge, P.
Amount to be
Withheld
WagePercentage
Bracket
Method
Method
Gross
Wage
or Salary
Pay
Frequency
2
$ 675
weekly
a.
S
1
1,960
weekly
b.
Felps, S.
M
6
1,775
biweekly
c.
Carson, W
M
4
2,480
semi-monthly
d.
Helm, M.
M
9
5,380
monthly
e.
1
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Payroll Practice and Management
Lesson 11 Assignment
2. Use (a) the percentage method and (b) the wage-bracket method to compute the federal
income taxes to withhold from the wages or salaries of each employee based on the
following 2023 W-4 Information. Use the tables in IRS Publication 15-T.
Using 2020 Form W-4
Amount to be Withheld
Employee
Marital
Status
More
than
1 job?
Step 2
checked?
Gross
Additional
Wage or
deductitons Salary
Corn, A.
S
No
No
$0
$ 675
weekly
a.
Fogge, P.
S
No
No
$0
1,960
weekly
b.
Felps, S.
M
No
No
$0
1,775
biweekly
c.
Carson, W
M
No
No
$0
2,480
semi-monthly
d.
Helm, M.
M
No
No
$0
5,380
monthly
e.
Pay
Frequency
Percentage
Method
WageBracket
Method
2
© 2020 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Payroll Practice and Management
Lesson 11 Assignment
Calculate supplemental wages and gross-up
3. Mattola Company is giving each of its employees a holiday bonus of $100 on December 13,
20XX (a nonpayday). The company wants each employee’s check to be $100. The
supplemental tax percent is used.
a. What will be the gross amount of each bonus if each employee pays a state tax of 2.8%
(besides the other payroll taxes)
b. What would the net amount of each bonus check be if the company did not gross-up.
3
© 2020 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.