Transcribed Image Text: PSb 3-9 Calculate Federal (Percentage Method – pre-2020 Form W-4), State, and Local Income Tax Withholding For each employee listed, use the

Transcribed Image Text: PSb 3-9 Calculate Federal (Percentage Method – pre-2020 Form W-4), State, and Local Income Tax Withholding
For each employee listed, use the percentage method to calculate federal income tax withholding, assuming that each has submitted a pre-2020 Form W-4. Then calculate both the
state income tax withholding (assuming a state tax rate of 5.0% of taxable pay, with taxable pay being the same for federal and state income tax withholding), and the local income
tax withholding. Refer to the Federal Tax Tables in Appendix A of your textbook.
NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
Publication 15-T (2020)
1: Armand Giroux (single; 0 federal withholding allowances) earned weekly gross pay of $1,500. For each period, he makes a 401(k) retirement plan contribution of 8% of
gross pay. The city in which he works (he lives elsewhere) levies a tax of 1% of an employee’s taxable pay (which is the same for federal and local income tax
withholding) on residents and 0.60% of an employee’s taxable pay on nonresidents.
Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $
2: Peter Quigley (married; 8 federal withholding allowances) earned weekly gross pay of $2,350. He contributes $100 to a flexible spending account during the period. The
city in which he lives and works levies a tax of 2.7% of an employee’s taxable pay (which is the same for federal and local income tax withholding) on residents and 1.9%
of an employee’s taxable pay on nonresidents.
Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $
3: Eric Belanger (married; 4 federal withholding allowances) earned weekly gross pay of $1,275. He does not request that any voluntary deductions be made from his gross
pay. The city in which he lives and works levies a tax of 1.5% of an employee’s taxable pay (which is the same for federal and local income tax withholding) on both
residents and nonresidents.
Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $
4: Christopher Martin (single; 4 federal withholding allowances) earned weekly gross pay of $2,780. He pays $85 to a cafeteria plan during the period. The city in which he
works levies a tax of $7/week on employees who work within city limits.
Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $

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