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Softa [21]
4 years ago
9

Ivan is single and claims two withholding allowances. His weekly gross earnings are $956. His state withholding is 3%, and his u

nion dues are $33. Find his net pay using the percentage method of withholding.
Business
1 answer:
seraphim [82]4 years ago
6 0

Answer:

$669.72. However this question was set years ago, so using the tax forms and tables for the year it was set, the answer would be $710.68

Explanation:

Total wage = 956

To find withholding allowance from 2019 withholding table = $80.80 for one withholding allowance

From the question, Ivan has 2 withholding allowances

Because he claims two withholding allowances = 80.80 * 2 = $161.6

Amount taxable is 956 - 161.6 = $794.4

State Withholding Tax is 3%

956 * 0.03 = $28.68

Federal Withholding Tax for 2019

Using the 2019 income tax withholding tables, available at https://www.irs.gov/businesses/small-businesses-self-employed/income-tax-withholding-assistant-for-employers

The amount for withholding tax is $63

This net pay = 956 - (161.6 + 63 + 28.68 + 33)

Netpay = 956 - 286.28 = 669.72

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