CPP 3-1 (#1) Calculate and Document Federal & State Income Tax Withholding
Calculate federal and state income tax withholding for a number of employees of TCLH Industries, a manufacturer of cleaning products. Use the wage-bracket method when it is
possible to do so, and use the percentage method in all other instances. Assume the state income tax withholding rate to be 5% of taxable pay (which is the same for federal and
state income tax withholding)
1. Zachary Fox does not make any voluntary deductions that impact earnings subject to federal income tax withholding. He is married, files his tax return as married filing jointly, and
his weekly gross pay was $1,162. When completing form W-4 Zachary checked box 2c, entered $2,000 in step 3 of the form, and left step 4 blank.
2. Calvin Bell makes a 401(k) retirement plan contribution of 6% of gross pay. He is single, claims two federal withholding allowances and one state withholding allowance, and his
weekly gross pay was $417.93.
3. David Alexander makes a 401(k) retirement plan contribution of 12% of gross pay. He is single, claims one withholding allowance for both federal and state taxes, and his weekly
gross pay was $4,050
4. Michael Sierra contributes $50 to a flexible spending account each period. He is married, claims four federal withholding allowances and three state withholding allowances, and
his weekly gross pay was $2,450.
