Accounting and Finance Foundations

Unit 8

Accounting and Finance Foundations Unit 8: Payroll 672

Payroll Student Assignment

Chapter 2

20.4.8

Chapter 20

Gross Pay Deductions

The form below shows the total wages, marital status, and withholding allowances for ten employees.

Use the wage bracket tables for income tax withholding available on pages 38-57 of the guide at

http://www.irs.gov/pub/irs-pdf/p15.pdf to determine the amount of federal taxes withheld. Use a Social

Security tax rate of 6.2% and a Medicare tax rate of 1.45% to determine proper withholdings.

Time

Card

Number

Number of

Allowances

Marital

Status

Wages

Federal

Withholding

Tax

Social

Security Medicare

1 3 S $491.00

2 4 M $500.00

3 1 M $312.00

4 2 M $496.00

5 5 S $385.00

6 4 S $467.00

7 0 S $398.00

8 2 S $252.00

9 1 M $278.00

10 0 S $444.00

20.4 Calculating Pay (cont’d)