PSa 3-9 Calculate Federal (Percentage Method - Pre-2020 Form W-4), State, and Local Income Tax...

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PSa 3-9 Calculate Federal (Percentage Method - Pre-2020 Form W-4), State, and Local Income Tax Withholding

For each employee listed, use the percentage method to calculate federal income tax withholding, assuming that each has submitted a pre-2020 Form W-4. Then calculate both the state income tax withholding (assuming a state tax rate of 5.0% of taxable pay, with taxable pay being the same for federal and state income tax withholding), and the local income tax withholding. Refer to Publication 15-T. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1:Walter Ferrell (married; 4 federal withholding allowances) earned weekly gross pay of $1,020. For each period, he makes a 401(k) retirement plan contribution of 13.5% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 1.25% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents, and 1.05% of an employee's taxable pay on nonresidents. Federal income tax withholding = $ State income tax withholding = $ Local income tax withholding = $

2:Lucas Sedaris (married; 3 federal withholding allowances) earned weekly gross pay of $2,785. He participates in a flexible spending account, to which he contributes $140 during the period. The city in which he lives and works levies a tax of 3% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents and 2.3% of an employee's taxable pay on nonresidents. Federal income tax withholding = $ State income tax withholding = $ Local income tax withholding = $

3:Darrell Roper (married; 6 federal withholding allowances) earned weekly gross pay of $1,530. He does not request that any voluntary deductions be made from his gross pay. The city in which he lives and works levies a tax of 2.45% of an employee's taxable pay (which is the same for federal and local income tax withholding) on both residents and nonresidents. Federal income tax withholding = $ State income tax withholding = $ Local income tax withholding = $

4:Giuseppe Fortuna (single; 2 federal withholding allowances) earned weekly gross pay of $3,860. He participates in a cafeteria plan, to which he pays $160 during the period. The city in which he works levies a tax of $10/week on employees who work within city limits. Federal income tax withholding = $ State income tax withholding = $ Local income tax withholding = $

Can you PLEASE write down every step of this process so that I can understand where every number is coming from.

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