Question

In: Accounting

Ernesto Enterprises uses the wage-bracket method to determine federal income tax withholding on its employees. Find...

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.

Click here to access the Wage-Bracket Method Tables.





Employee



Marital
Status


No. of
Withholding
Allowances
Payroll Period
W=Weekly
S=Semimonthly
M=Monthly
D=Daily




Wage



Amount to Be
Withheld
Ed Boone M 1 W $1,250             $
Ray Ortega S 1 W 695            
Carl Lopez S 3 W 915            
Terri Kim M 6 M 5,070            
Kathy Horace M 2 M 3,730            
John Gleam M 8 S 1,200            
Rob Abreu S 1 D 115            
Carmen Sanchez S 4 S 2,040            
Howard Nee M 4 M 4,500

Solutions

Expert Solution

(I have used wage bracket method table for year 2018)

a) EdBoone is married and wages are paid weekly and his wages is $1,250 according to the wage bracket method table his wages falls between $1,245 and $1,255 and no. of withholding allowance is 1. Hence the amount of income tax to be withheld is $106.

b) Ray Ortega is single and wages are paid weekly and his wages is $695 according to the wage bracket method table his wages falls between $690 and $700 and no. of withholding allowance is 1. Hence the amount of income tax to be withheld is $62.

c) Carl Lopez is single and wages are paid weekly and his wages is $915 according to the wage bracket method table his wages falls between $910 and $920 and no. of withholding allowance is 3. Hence the amount of income tax to be withheld is $69.

d) Terri Kim is married and wages are paid monthly and his wages is $5,070 according to the wage bracket method table his wages falls between $5,070 and $5,110 and no. of withholding allowance is 6. Hence the amount of income tax to be withheld is $215.

e) Kathy Horace is married and wages are paid monthly and his wages is $3,730 according to the wage bracket method table his wages falls between $3,710 and $3,750 and no. of withholding allowance is 2. Hence the amount of income tax to be withheld is $217.

f) John Gleam is married and wages are paid semimonthly and his wages is $1,200 according to the wage bracket method table his wages falls between $1,185 and $1,205 and no. of withholding allowance is 8. Hence the amount of income tax to be withheld is $0.

g) Rob Abreu is single and wages are paid daily and his wages is $115 according to the wage bracket method table his wages falls between $114 and $117 and no. of withholding allowance is 1. Hence the amount of income tax to be withheld is $10.

h) Carmen Sanchez is single and wages are paid semimonthly and his wages is $2,040 according to the wage bracket method table his wages falls between $2,040 and $2,060 and no. of withholding allowance is 4. Hence the amount of income tax to be withheld is $137.

i) Howard Nee is married and wages are paid monthly and his wages is $4,500 according to the wage bracket method table his wages falls between $4,470 and $4,510 and no. of withholding allowance is 4. Hence the amount of income tax to be withheld is $226.


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