PE 11-2A Federal income tax withholding

Bob Tappert’s weekly gross earnings for the present week were $1,600. Tappert has one exemption. Using the wage bracket withholding table in Exhibit 3 with a $70 standard withholding allowance for each exemption, what is Tappert’s federal income tax withholding?

Answer:

Total wage payment............................................................. $1,600.00 
One allowance (provided by IRS)........................................ $70.00 
Multiplied by allowances claimed on Form W-4................ ×       1   70.00 Amount subject to withholding........................................... $1,530.00    Initial withholding from wage bracket in Exhibit 3............  $ 234.60 Plus additional withholding: 27% of excess over $1,302..   61.56* Federal income tax withholding..........................................  $ 296.16   

*($1,530 – $1,302) × 27%

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