PE 11-2B Federal income tax withholding

John Wolfe’s weekly gross earnings for the present week were $2,200. Wolfe has two exemptions. Using the wage bracket withholding table in Exhibit 3 with a $70 standard withholding allowance for each exemption, what is Wolfe’s federal income tax withholding?

Answer:

Total wage payment.............................................................. $2,200.00 One allowance (provided by IRS)........................................ $70.00  Multiplied by allowances claimed on Form W-4................. ×       2   140.00 Amount subject to withholding ........................................... $2,060.00    Initial withholding from wage bracket in Exhibit 3.............  $ 340.44 Plus additional withholding: 28% of excess over $1,687..   104.44* Federal income tax withholding ..........................................  $ 444.88   


*($2,060 – $1,687) × 28%

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