Use the percentage method to compute the federal income taxes to withhold from the wages or salaries of each employee. 4–2A. Employee No. Employee Name Marital Status No. of Withholding Allowances Gross Wage or Salary Amount to Be Withheld 1 Amoroso, A. M 4 $1,610 weekly 2 Finley, R. S 0 825 biweekly 3 Gluck, E. S 5 9,630 quarterly 4 Quinn, S. M 8 925 semimonthly 5 Treave, Y. M 3 2,875 monthly 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. 4–4A. Employee Marital Status No. of Withholding Allowances Payroll Period W = Weekly S = Semimonthly M = Monthly D = Daily Wage Amount to Be Withheld Hal Bower M 1 W $1,350 Ruth Cramden S 1 W 590 Gil Jones S 3 W 675 Teresa Kern M 6 M 4,090 Ruby Long M 2 M 2,730 Katie Luis M 8 S 955 Susan Martin S 1 D 96 *Jim Singer S 4 S 2,610 Martin Torres M 4 M 3,215 *Must use percentage method (Jim Singer ONLY) Damerly Company wants to give a holiday bonus check of $250 to each employee. Since it wants the check amount to be $250, it will need to gross up the amount of the bonus. Calculate the withholding taxes and gross amount of the bonus to be made to John Rolen if his cumulative earnings for the year are $46,910. Besides, being subject to social security taxes and federal income tax (supplemental rate), a 7% California income tax must be withheld on supplemental payments. 4–6A. (a) $250 1 – 0.25 (supplemental federal rate) – 0.062 (OASDI) – 0.0145 (HI) – 0.07 (California tax) = ___________ (b) $250/(1 – 0.3965) = __________ (c) Gross bonus amount __________ Federal income tax withheld __________ OASDI tax withheld ____________ HI tax withheld ____________ California income tax withheld ___________ Take-home bonus check __________ George Clausen (age 48) is employed by Kline Company and is paid a salary of $42,640. He has just decided to join the company’s Simple Retirement Account (IRA form) and has a few questions. Answer the following: 4–11A. (a) Clausen’s maximum contribution _____________ (b) Kline Company’s contribution (3%) _____________ (c) Clausen’s take-home pay with the retirement contribution deducted: Weekly pay ............................................................. $ 820.00 FICA—OASDI .............................................................. ______ FICA—HI ..................................................................... ______ FIT ($820.00 – $230.77 = $589.23 taxable) ............... _________* State income tax ($820.00 × 0.023) ........................... ______ Retirement contribution ($12,000 ÷ 52) ............   .... _______ Take-home pay ....................................................... _______ *Married, 2 allowances. (d) Clausen’s take-home pay without the retirement contributi.

1. Use the percentage method to compute the federal income taxes
to withhold from the wages or salaries of each employee.
4–2A.
Employee
No.
Employee Name
Marital
Status
No. of
Withholding
Allowances
Gross Wage
or Salary
Amount
to Be
Withheld
1
Amoroso, A.
M
4
$1,610
weekly
2
Finley, R.
S
0
825
biweekly

2. 3
Gluck, E.
S
5
9,630
quarterly
4
Quinn, S.
M
8
925
semimonthly
5
Treave, Y.
M
3
2,875
monthly
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.
4–4A.

3. Employee
Marital
Status
No. of
Withholding
Allowances
Payroll Period
W = Weekly
S = Semimonthly
M = Monthly
D = Daily
Wage
Amount to
Be Withheld
Hal Bower
M
1
W
$1,350
Ruth Cramden
S
1
W
590
Gil Jones

4. S
3
W
675
Teresa Kern
M
6
M
4,090
Ruby Long
M
2
M
2,730
Katie Luis
M
8
S
955
Susan Martin
S
1
D
96
*Jim Singer
S

5. 4
S
2,610
Martin Torres
M
4
M
3,215
*Must use percentage method (Jim Singer ONLY)
Damerly Company wants to give a holiday bonus check of $250
to each employee.

6. Since it wants the check amount to be $250, it will need to
gross up the amount of the bonus.
Calculate the withholding
taxes and gross amount of the bonus to be made to John Rolen if
his cumulative earnings for the year are $46,910.
Besides, being subject to social security taxes and federal
income tax (supplemental rate), a 7% California income tax
must be withheld on supplemental payments.
4–6A.
(a)
$250
1 – 0.25 (supplemental federal rate) – 0.062 (OASDI) – 0.0145
(HI) – 0.07 (California tax) = ___________
(b)
$250/(1 – 0.3965) = __________
(c)
Gross bonus amount __________

7. Federal income tax withheld __________
OASDI tax withheld ____________
HI tax withheld ____________
California income tax withheld ___________
Take-home bonus check __________
George Clausen (age 48) is employed by Kline Company and is
paid a salary of $42,640.
He has just decided to join the company’s Simple Retirement
Account (IRA form) and has a few questions.
Answer the following:
4–11A.
(a)
Clausen’s maximum contribution _____________

8. (b)
Kline Company’s contribution (3%) _____________
(c)
Clausen’s take-home pay with the
retirement contribution deducted:
Weekly pay
.............................................................
$
820.00
FICA—OASDI
..............................................................
______
FICA—HI
.....................................................................
______
FIT ($820.00 – $230.77 = $589.23 taxable)
...............

9. _________*
State income tax ($820.00
×
0.023)
...........................
______
Retirement contribution ($12,000 ÷ 52)
............ ....
_______
Take-home pay
.......................................................
_______
*Married, 2 allowances.
(d)
Clausen’s take-home pay without the
retirement contribution deducted:
Weekly pay
...........................................................

10. $820.00
FICA—OASDI
..........................................................
______
FICA—HI
.................................................................
______
FIT (on $820.00)
......................................................
______
State income tax ($820.00
×
0.023)
........................
______
Take-home pay
.......................................................
______