Payroll Accounting
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Example4.3.docxExample 4-4
To use the 2023 Wage Bracket Method for Manual Payroll Systems With Forms W-4 From 2020 or Later using Standard Withholding, follow the steps illustrated below.
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Step 1 |
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Select the withholding table that applies to the employee's pay period. |
➡ |
Adrienne Huff is married filing jointly (MFJ). She is paid weekly at a rate of $815. |
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Step 2 |
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Locate the wage bracket (the first two columns of the table) in which the employee's gross wages fall. |
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Locate the appropriate wage bracket (see Figure 4.7): |
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At least $815 but less than $825 |
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Step 3 |
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Follow the line for the wage bracket across to the right to the column showing the appropriate filing status with standard withholding. Withhold this amount of tax. |
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Move across the line to the column showing Married Filing Jointly, Standard withholding. |
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The tax to withhold is $29. |
Eaton 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. Enter all amounts as positive numbers. If an amount is zero, enter "0". Round interim and final answers to two decimal places.
As we go to press, the federal income tax rates for 2024 are being determined by budget talks in Washington, and are not available for publication. For this edition, the 2023 federal income tax tables for Manual Systems with Forms W-4 From 2020 or Later with Standard Withholding and 2023 FICA rates have been used.
Click here to access the Wage-Bracket Method Tables.
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Employee |
Filing Status |
No. of Withholding Allowances |
Payroll Period W = Weekly S = Semimonthly M = Monthly D = Daily |
Wage |
Amount to Be Withheld |
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Tarra James |
MFJ |
N/A |
W |
$1,350 |
fill in the blank 1 of 9$ |
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Mike Cramden |
S |
N/A |
W |
590 |
fill in the blank 2 of 9 |
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Jim Jones |
S |
N/A |
W |
675 |
fill in the blank 3 of 9 |
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Joan Kern |
MFJ |
N/A |
M |
3,100 |
fill in the blank 4 of 9 |
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Mary Long |
MFJ |
N/A |
M |
2,730 |
fill in the blank 5 of 9 |
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Cathy Luis |
MFJ |
N/A |
S |
955 |
fill in the blank 6 of 9 |
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Josie Martin |
S |
N/A |
D |
108 |
fill in the blank 7 of 9 |
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Terri Singer |
S |
N/A |
S |
2,500 |
fill in the blank 8 of 9 |
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Shelby Torres |
MFJ |
N/A |
M |
3,215 |
fill in the blank 9 of 9 |
