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PSC $3-5$ Calculate Federal Income Tax Withholding Using Two Methods $($Pre$-2020$ Form W$-4)$

For each employee listed, use both the wage$-$bracket method and the percentage method to calculate federal income tax with olding for an employee who has submitted a pre$-2020$ Form W$-4.$ 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.

Michael Daugherty $($married; $5$ federal withholding allowances$)$ earned weekly gross pay of $$855.$ For each period, he makes a $403($b$)$ retirement plan contribution of $12\%$ of gross pay.

Using wage$-$bracket method: Federal income tax withholding $=0$

Using percentage method: Federal income tax withholding $=$$

Carol Harrison $($single; $0$ federal witholding allowances$)$ earned daily gross pay of $$250.$ For each period, she makes a $401($k$)$ contribution of $10\%$ of gross pay.

Using wage$-$bracket method: Federal income tax withholding $=$$ $q,$ Using percentage method: Federal income tax withholding $=$$ $q,$

$q,3.$ John Moyer $($married; $6$ federal withholding allowances$)$ earned monthly gross pay of $$3,050.$ He participates in a flexible spending account, to which he contributed $$250$ during the period.

Using wage$-$bracket method: Federal income tax withholding $=$$ Using percentage method: Federal income tax withholding $=$$

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