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.
-Fred Jones has gross earnings of $4723.08 biweekly. He is married and has 3 withholding allowances.
A)$3,673.96
B)$4,035.27
C)$5,049.58
D)$4,361.77

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. 
-Fred Jones has gross earnings of $4723.08 biweekly. He is married and has 3 withholding allowances.
A)$3,673.96 
B)$4,035.27 
C)$5,049.58 
D)$4,361.77

Quizplus · Accepted Answer

Fred's biweekly gross income is $4723.08. He is married and has 3 withholding allowances. Using the IRS withholding calculator, the federal income tax withheld is $472.82, the Social Security tax withheld is $319.32, and the Medicare tax withheld is $73.84. Therefore, Fred's net pay is $3,857.08.

Use the Percentage Method of Withholding to Find the Federal