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a177_mod_07_demonstration_1.xlsx
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Module 07 Demonstration

Module 07 Demonstration Problems
Problem 7.1
Assume that the state tax rate is 2.5%. Calculate the state tax withholding.
State Instructor Feedback
Employee Wages Withholding
No. 1 $ 800.00
No. 2 $ 190.00
No. 3 $ 2,900.00
No. 4 $ 3,650.00
No. 5 $ 5,850.00
Problem 7.2
Assume that the state tax rate is 1.5%. Calculate the state tax withholding.
State Instructor Feedback
Employee Wages Withholding
No. 1 $ 950.00
No. 2 $ 1,850.00
No. 3 $ 3,500.00
No. 4 $ 4,650.00
No. 5 $ 7,845.00
Problem 7.3
Use the wage-bracket method to determine the federal income taxes to withhold from the wages and salaries of each employee. Instructor Feedback
Use the wage brackets found in the Publication 15 PDF file provided with the assignment file. Asume the state tax rate is 2.75%.
For the FICA taxes, assume an OASDI rate of 6.45% and an HI rate of .65%.
With-
Marital holding State Federal Employee FICA
Employee Status Allow. Wages Withholding Withholding OASDI HI
No. 1 Single 2 $1,150 weekly
No. 2 Single 1 $2,060 biweekly
No. 3 Married 4 $2,850 semimonthly
No. 4 Married 6 $2,900 semimonthly
No. 5 Married 3 $4,000 monthly
Problem 7.4
Use the wage-bracket method to determine the federal income taxes to withhold from the wages and salaries of each employee. Instructor Feedback
Use the wage brackets found in the Publication 15 PDF file provided with the assignment file. Asume the state tax rate is 4%.
For the FICA taxes, assume an OASDI rate of 5.5% and an HI rate of .75%.
With-
Marital holding State Federal Employee FICA
Employee Status Allow. Wages Withholding Withholding OASDI HI
No. 1 Single 2 $850 weekly
No. 2 Married 2 $1,200 biweekly
No. 3 Single 1 $1,700 semimonthly
No. 4 Married 5 $2,700 semimonthly
No. 5 Married 4 $5,500 monthly

Solutions

Problem 7.1
Assume that the state tax rate is 2.5%. Calculate the state tax withholding.
State Instructor Feedback
Employee Wages Withholding
No. 1 $ 800.00 $ 20.00
No. 2 $ 190.00 $ 4.75
No. 3 $ 2,900.00 $ 72.50
No. 4 $ 3,650.00 $ 91.25
No. 5 $ 5,850.00 $ 146.25
Problem 7.2
Assume that the state tax rate is 1.5%. Calculate the state tax withholding.
State Instructor Feedback
Employee Wages Withholding
No. 1 $ 950.00 $ 14.25
No. 2 $ 1,850.00 $ 27.75
No. 3 $ 3,500.00 $ 52.50
No. 4 $ 4,650.00 $ 69.75
No. 5 $ 7,845.00 $ 117.68
Problem 7.3
Use the wage-bracket method to determine the federal income taxes to withhold from the wages and salaries of each employee. Instructor Feedback
Use the wage brackets found in the Publication 15 PDF file provided with the assignment file. Asume the state tax rate is 2.75%.
For the FICA taxes, assume an OASDI rate of 6.45% and an HI rate of .65%.
With-
Marital holding State Federal Employee FICA
Employee Status Allow. Wages Withholding Withholding OASDI HI
No. 1 Single 2 $1,150 weekly $ 31.63 $ 160.00 $ 74.18 $ 7.48
No. 2 Single 1 $2,060 biweekly $ 56.65 $ 299.00 $ 132.87 $ 13.39
No. 3 Married 4 $2,850 semimonthly $ 78.38 $ 238.00 $ 183.83 $ 18.53
No. 4 Married 6 $2,900 semimonthly $ 79.75 $ 198.00 $ 187.05 $ 18.85
No. 5 Married 3 $4,000 monthly $ 110.00 $ 274.00 $ 258.00 $ 26.00
Problem 7.4
Use the wage-bracket method to determine the federal income taxes to withhold from the wages and salaries of each employee. Instructor Feedback
Use the wage brackets found in the Publication 15 PDF file provided with the assignment file. Asume the state tax rate is 4%.
For the FICA taxes, assume an OASDI rate of 5.5% and an HI rate of .75%.
With-
Marital holding State Federal Employee FICA
Employee Status Allow. Wages Withholding Withholding OASDI HI
No. 1 Single 2 $850 weekly $ 34.00 $ 90.00 $ 46.75 $ 6.38
No. 2 Married 2 $1,200 biweekly $ 48.00 $ 58.00 $ 66.00 $ 9.00
No. 3 Single 1 $1,700 semimonthly $ 68.00 $ 199.00 $ 93.50 $ 12.75
No. 4 Married 5 $2,700 semimonthly $ 108.00 $ 192.00 $ 148.50 $ 20.25
No. 5 Married 4 $5,500 monthly $ 220.00 $ 446.00 $ 302.50 $ 41.25