Pay period / 2018 allowance amount Weekly / $77.90 Biweekly / $155.80 Semimonthly / $168.80 Monthly...

Pay period / 2018 allowance amount

Weekly / $77.90

Biweekly / $155.80

Semimonthly / $168.80

Monthly / $337.50

Quarterly / $1,012.50

Semiannually / $2,025.00

annually / $4,050.00

Easter bunny is married, and his pay is $2,000 per week. On his form W-4 easter claims married with one dependent child. Using the above table, calculate the following (Round answer to the nearest dollar)

i.) Allowance amount: $

ii.) Withholding income: $

Solutions

Expert Solution

Withholding allowance or income is one that is reduced from the gross pay in order to calculate Income tax withholdings. It also refers to an exemption that reduces how much income tax an employer deducts from an employee's paycheck.

Gross pay = $XXXXX

LESS: Withholding Income = $XXX

Income subject to Federal income taxes XX

i) Since Mr. Easter Bunny is getting weekly pay, the allowance or exemption amount per week would be $77.90.

ii) Withholding income = Allowance amount x Number of exemptions an employee willing to avail.

Number of allowances an employee willing to avail depends on the fact that how many persons are depending on him.

Since Mr. Easter Bunny is married and had a dependent child, availing three exemptions/ allowances would be ideal. [One for himself, One for his spouse (assuming his spouse is dependent on him) and one for his dependent child].

Therefore, Withholding income = $77.90 x 3 = $234

ekkarill92 answered 7 months ago

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