Ernesto Enterprises uses the wage-bracket method to determine federal income tax

Question

Ernesto Enterprises uses the wage-bracket method to determine federal income tax withholding on its employees. Find the amount to withhold from the wages paid each employee.
If an amount is zero, enter "0". Enter all amounts as positive numbers. Use the Wage- bracket tables in Publication 15.

Employee

Marital
Status

No. of
Withholding
Allowances

Payroll Period
W=Weekly
S=Semimonthly
M=Monthly
D=Daily

Wage

Amount to Be
Withheld

4.a. Ed Boone

M

1

W

$1,250            

$

4.b. Ray Ortega

S

1

W

695            

4.c. Carl Lopez

S

3

W

915            

4.d. Terri Kim

M

6

M

5,070            

4.e. Kathy Horace

M

2

M

3,730            

4.f. John Gleam

M

8

S

1,200            

4.g. Rob Abreu

S

1

D

115            

4.h. Carmen Sanchez

S

4

S

2,040            

4.i. Howard Nee

M

4

M

4,500            

Employee

Marital
Status

No. of
Withholding
Allowances

Payroll Period
W=Weekly
S=Semimonthly
M=Monthly
D=Daily

Wage

Amount to Be
Withheld

4.a. Ed Boone

M

1

W

$1,250            

$

4.b. Ray Ortega

S

1

W

695            

4.c. Carl Lopez

S

3

W

915            

4.d. Terri Kim

M

6

M

5,070            

4.e. Kathy Horace

M

2

M

3,730            

4.f. John Gleam

M

8

S

1,200            

4.g. Rob Abreu

S

1

D

115            

4.h. Carmen Sanchez

S

4

S

2,040            

4.i. Howard Nee

M

4

M

4,500            

Explanation / Answer

We will be using data from Wage Bracket table in Publication 15

4a - Ed Boone

Marital Status - Married, Allowance - 1, Pay Period - Weekly, Pay - 1250

Using the Wage bracket table for the above characteristics amount to be withhold = 134

4b - Ray Ortega

Marital Status - Single, Allowance - 1, Pay Period - Weekly, Pay - 695

Using the Wage bracket table for the above characteristics amount to be withhold = 77

4c - Carl Lopez

Marital Status - Single, Allowance - 3, Pay Period - Weekly, Pay - 915

Using the Wage bracket table for the above characteristics amount to be withhold = 116

4d - Terry Kim

Marital Status - Married, Allowance - 6, Pay Period - Monthly, Pay - 5070

Using the Wage bracket table for the above characteristics amount to be withhold = 269

4e - Kathy Horace

Marital Status - Married, Allowance - 2, Pay Period - Monthly, Pay - 3730

Using the Wage bracket table for the above characteristics amount to be withhold = 274

4f - John Gleam

Marital Status - Married, Allowance - 8, Pay Period - Semi-monthly, Pay - 1200

Using the Wage bracket table for the above characteristics amount to be withhold = 0

4g - Rob Abreu

Marital Status - Single, Allowance - 1, Pay Period - Daily, Pay - 115

Using the Wage bracket table for the above characteristics amount to be withhold = 12

4h - Carmen Sanchez

Marital Status - Single, Allowance - 4, Pay Period - Semi-monthly, Pay - 2040

Using the Wage bracket table for the above characteristics amount to be withhold = 172

4i - Howard Nee

Marital Status - Married, Allowance - 4, Pay Period - Monthly, Pay - 4500

Using the Wage bracket table for the above characteristics amount to be withhold = 287

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