FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
A married individual who is paid on a monthly basis, claims 3 federal withholding allowances, completed the pre-2020 Form W-4, and earns $1,495 has $_________ in federal income tax withholding when using the wage-bracket method.
Expert Solution
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Step 1
The wage bracket technique is the simplest because it calculates the precise number to withhold depending on the following basis:
1. An employee's taxable salary.
2. The number of allowances claimed by the individual.
3. The individual's marital status.
4. Lastly is the payroll period.
There are no computations involved in determining federal withholding tax.
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