Use the percentage method of withholding to find the federal withholding tax, a 6.2% FICA rate to find the FICA tax, and
1.45% to find the Medicare tax. Then find the net pay for the employee. Assume that the employee has not earned over
$115,000 so far this year.
-Robert Stang has gross earnings of $603.16 weekly. He is married and has 4 withholding allowances.
A)$541.73
B)$587.88
C)$572.29
D)$557.01

Question

Use the percentage method of withholding to find the federal withholding tax, a 6.2% FICA rate to find the FICA tax, and
1.45% to find the Medicare tax. Then find the net pay for the employee. Assume that the employee has not earned over
$115,000 so far this year.  
-Robert Stang has gross earnings of $603.16 weekly. He is married and has 4 withholding allowances.
A)$541.73 
B)$587.88 
C)$572.29 
D)$557.01

Quizplus · Accepted Answer

Federal withholding tax: 
Using the percentage method with weekly payroll period and four withholding allowances, we can find the amount of federal withholding tax as follows:
- First, we calculate the gross pay minus allowances: $603.16 - (4 x $82.80) = $297.96
- Next, we find the percentage for $297.96 using the IRS percentage tables for the weekly payroll period and four allowances. The percentage is 11.65%.
- Finally, we multiply $297.96 by 11.65% to get the federal withholding tax amount: $34.70

FICA tax:
The FICA tax consists of two parts: Social Security (6.2%) and Medicare (1.45%). To find the FICA tax amount, we need to calculate each part separately:
- Social Security: $603.16 x 6.2% = $37.40
- Medicare: $603.16 x 1.45% = $8.75
- Total FICA tax: $37.40 + $8.75 = $46.15

Net pay:
To find the net pay, we subtract all the taxes and any other deductions from the gross pay:
$603.16 - $34.70 - $46.15 = $522.31

Therefore, the answer is A) $541.73 (rounding to the nearest cent).

Use the Percentage Method of Withholding to Find the Federal