Ch.5 Verified Test Bank Employee Net Pay and Pay Methods

Payroll Accounting 2018, 4e (Landin)

Chapter 5 Employee Net Pay and Pay Methods

1) Computation of net pay involves deducting mandatory and voluntary deductions from gross pay.

2) Federal income tax, Medicare tax, and Social Security tax amounts withheld from employee pay are computed based on gross pay, less pre-tax deductions, and deducted to arrive at net pay.

3) The amount of federal income tax decreases as the number of allowances increases.

4) The wage-bracket of determining federal tax withholding yields more accurate amounts than the percentage method.

5) Social Security tax has a wage base, which is the minimum amount an employee must earn before they will have the Social Security tax deduction.

6) The regular Medicare tax deduction is 1.45% for employee and employer and must be paid by all employees.

7) A firm has headquarters in Indiana, but has offices in California and Utah. For employee taxation purposes, it may choose which of those three states income tax laws it wishes to use.

8) Garnishments are court-ordered amounts that an employer must withhold from an employee's pre-tax pay and remit to the appropriate authority.

9) Charitable contributions are an example of post-tax voluntary deductions.

10) The use of paycards as a means of transmitting employee pay began in the 1990s with over-the-road drivers out of a need to transmit funds reliably on payday.

11) Which are steps in the net pay computation process? (Select all that apply.)

A) Compute gross pay.

B) Update employee records.

C) Compute taxes to be withheld.

D) Report fringe benefit balances.

12) What payroll-specific tool is used to facilitate computation of net pay?

A) Employee Information Form

B) Payroll Register

C) Form I-9

D) Supervisor Payroll Report

13) How are income taxes and FICA taxes applied to grossed-up pay? (Select all that apply.)

A) Compute the sum of the income tax and FICA tax rates.

B) Multiply the gross pay by the sum of the income tax and FICA tax rates.

C) Subtract the sum of the income tax rate and FICA tax rate from 100 percent.

D) Divide the net pay by the net tax rate.

14) Which of the following federal withholding allowance scenarios will have the highest income tax?

A) Single, 1 allowance

B) Married, 3 allowances

C) Single, 5 allowances

D) Married, 0 allowances

15) Which of the following statements is/are true about Social Security tax deductions from gross pay? (Select all that apply.)

A) The tax rate is 6.0%.

B) The tax is computed on all earnings.

C) Section 125 deductions are not subject to Social Security tax.

D) The wage base is $127,200.

16) Which of the following statements is/are true about Medicare tax? (Select all that apply.)

A) All employee earnings less pre-tax deductions are subject to Medicare tax.

B) Employers match all Medicare taxes withheld.

C) The Medicare tax rate is 1.45%.

D) Additional Medicare tax is withheld for employees who earn more than $150,000 annually.

17) Which of the following states do not have state income tax deducted from employee pay? (Select all that apply.)

B) Montana

C) Alaska

D) Maine

18) Which of the following is used in the determination of the amount of federal income tax to be withheld from an employee per pay period?

A) Date of birth

B) Annual salary

C) Marital status

D) Prior year's tax return

19) What role does the employer play regarding an employee's federal withholding tax?

A) Collector and depositor

B) Reporter and depositor

C) Collector and verifier

D) Verifier and reporter

20) Amity is an employee with a period gross pay of $2,000. She elects to have 3% of her gross pay withheld for her 401(k) contribution. What will be her taxable income be for federal income taxes?

A) $2,000

B) $1,970

C) $1,940

D) $1,910

21) Max earned $1,019.55 during the most recent semimonthly pay period. He is single with 1 withholding allowance and has no pre-tax deductions. Using the following table, how much should be withheld for federal income tax?

Wage Bracket Method Tables for Income Tax Withholding SINGLE Persons-SEMIMONTHLY Payroll Period (For Wages Paid through December 31,2017)
And the wages are		And the number of withholding allowances claimed is-
At least	But less than		0	1	2	3	4	5	6	7	8	9	10
			The amount of income tax to be withheld is-
$800	$820		$88	$62	$38	$21	$4	$0	$0	$0	$0	$0	$0
820	840		91	65	40	23	6	0	0	0	0	0	0
840	860		94	68	43	25	8	0	0	0	0	0	0
860	880		97	71	46	27	10	0	0	0	0	0	0
880	900		100	74	49	29	12	0	0	0	0	0	0
900	920		103	77	52	31	14	0	0	0	0	0	0
920	940		106	80	55	33	16	0	0	0	0	0	0
940	960		109	83	58	35	18	1	0	0	0	0	0
960	980		112	86	61	37	20	3	0	0	0	0	0
980	1,000		115	89	64	39	22	5	0	0	0	0	0
1,000	1,020		118	92	67	42	24	7	0	0	0	0	0
1,020	1,040		121	95	70	45	26	9	0	0	0	0	0
1,040	1,060		124	98	73	48	28	11	0	0	0	0	0
1,060	1,080		127	101	76	51	30	13	0	0	0	0	0
1,080	1,100		130	104	79	54	32	15	0	0	0	0	0
1,100	1,120		133	107	82	57	34	17	0	0	0	0	0
1,120	1,140		136	110	85	60	36	19	2	0	0	0	0
1,140	1,160		139	113	88	63	38	21	4	0	0	0	0
1,160	1,180		142	116	91	66	40	23	6	0	0	0	0
1,180	1,200		145	119	94	69	43	25	8	0	0	0	0
1,200	1,220		148	122	97	72	46	27	10	0	0	0	0
1,220	1,240		151	125	100	75	49	29	12	0	0	0	0
1,240	1,260		154	128	103	78	52	31	14	0	0	0	0
1,260	1,280		157	131	106	81	55	33	16	0	0	0	0
1,280	1,300		160	134	109	84	58	35	18	1	0	0	0
1,300	1,320		163	137	112	87	61	37	20	3	0	0	0
1,320	1,340		166	140	115	90	64	39	22	5	0	0	0
1,340	1,360		169	143	118	93	67	42	24	7	0	0	0
1,360	1,380		172	146	121	96	70	45	26	9	0	0	0
1,380	1,400		175	149	124	99	73	48	28	11	0	0	0
1,400	1,420		178	152	127	102	76	51	30	13	0	0	0
1,420	1,440		181	155	130	105	79	54	32	15	0	0	0
1,440	1,460		184	158	133	108	82	57	34	17	0	0	0
1,460	1,480		187	161	136	111	85	60	36	19	2	0	0
1,480	1,500		190	164	139	114	88	63	38	21	4	0	0
1,500	1,520		193	167	142	117	91	66	41	23	6	0	0
1,520	1,540		196	170	145	120	94	69	44	25	8	0	0
1,540	1,560		199	173	148	123	97	72	47	27	10	0	0
1,560	1,580		202	176	151	126	100	75	50	29	12	0	0
1,580	1,600		205	179	154	129	103	78	53	31	14	0	0
1,600	1,620		208	182	157	132	106	81	56	33	16	0	0
1,620	1,640		211	185	160	135	109	84	59	35	18	2	0
1,640	1,660		214	188	163	138	112	87	62	37	20	4	0
1,660	1,680		217	191	166	141	115	90	65	40	22	6	0
1,680	1,700		221	194	169	144	118	93	68	43	24	8	0
1,700	1,720		226	197	172	147	121	96	71	46	26	10	0
1,720	1,740		231	200	175	150	124	99	74	49	28	12	0
1,740	1,760		236	203	178	153	127	102	77	52	30	14	0
1,760	1,780		241	206	181	156	130	105	80	55	32	16	0
1,780	1,800		246	209	184	159	133	108	83	58	34	18	1
1,800	1,820		251	212	187	162	136	111	86	61	36	20	3
1,820	1,840		256	215	190	165	139	114	89	64	38	22	5
1,840	1,860		261	219	193	168	142	117	92	67	41	24	7
1,860	1,880		266	224	196	171	145	120	95	70	44	26	9
1,880	1,900		271	229	199	174	148	123	98	73	47	28	11
1,900	1,920		276	234	202	177	151	126	101	76	50	30	13
1,920	1,940		281	239	205	180	154	129	104	79	53	32	15
1,940	1,960		286	244	208	183	157	132	107	82	56	34	17
1,960	1,980		291	249	211	186	160	135	110	85	59	36	19
1,980	2,000		296	254	214	189	163	138	113	88	62	38	21
2,000	2,020		301	259	217	192	166	141	116	91	65	40	23
2,020	2,040		306	264	222	195	169	144	119	94	68	43	25
2,040	2,060		311	269	227	198	172	147	122	97	71	46	27
2,060	2,080		316	274	232	201	175	150	125	100	74	49	29
2,080	2,100		321	279	237	204	178	153	128	103	77	52	31
2,100	2,120		326	284	242	207	181	156	131	106	80	55	33
2,120	2,140		331	289	247	210	184	159	134	109	83	58	35

A) $118.00

B) $121.00

C) $95.00

D) $92.00

22) Trish earned $1,734.90 during the most recent semimonthly pay period. She is married and has 3 withholding allowances and has no pre-tax deductions. Based on the following table, how much should be withheld from her gross pay for Federal income tax?

Wage Bracket Method Tables for Income Tax Withholding MARRIED Persons-SEMIMONTHLY Payroll Period (For Wages Paid through December 31,2017)
And the wages are		And the number of withholding allowances claimed is-
At least	But less than	0	1	2	3	4	5	6	7	8	9	10
		The amount of income tax to be withheld is-
$1,600	$1,620	$149	$123	$98	$74	$57	$41	$24	$7	$0	$0	$0
1,620	1,640	152	126	101	76	59	43	26	9	0	0	0
1,640	1,660	155	129	104	79	61	45	28	11	0	0	0
1,660	1,680	158	132	107	82	63	47	30	13	0	0	0
1,680	1,700	161	135	110	85	65	49	32	15	0	0	0
1,700	1,720	164	138	113	88	67	51	34	17	0	0	0
1,720	1,740	167	141	116	91	69	53	36	19	2	0	0
1,740	1,760	170	144	119	94	71	55	38	21	4	0	0
1,760	1,780	173	147	122	97	73	57	40	23	6	0	0
1,780	1,800	176	150	125	100	75	59	42	25	8	0	0
1,800	1,820	179	153	128	103	77	61	44	27	10	0	0
1,820	1,840	182	156	131	106	80	63	46	29	12	0	0
1,840	1,860	185	159	134	109	83	65	48	31	14	0	0
1,860	1,880	188	162	137	112	86	67	50	33	16	0	0
1,880	1,900	191	165	140	115	89	69	52	35	18	1	0
1,900	1,920	194	168	143	118	92	71	54	37	20	3	0
1,920	1,940	197	171	146	121	95	73	56	39	22	5	0
1,940	1,960	200	174	149	124	98	75	58	41	24	7	0
1,960	1,980	203	177	152	127	101	77	60	43	26	9	0
1,980	2,000	206	180	155	130	104	79	62	45	28	11	0
2,000	2,020	209	183	158	133	107	82	64	47	30	13	0
2,020	2,040	212	186	161	136	110	85	66	49	32	15	0
2,040	2,060	215	189	164	139	113	88	68	51	34	17	0
2,060	2,080	218	192	167	142	116	91	70	53	36	19	2
2,080	2,100	221	195	170	145	119	94	72	55	38	21	4
2,100	2,120	224	198	173	148	122	97	74	57	40	23	6
2,120	2,140	227	201	176	151	125	100	76	59	42	25	8
2,140	2,160	230	204	179	154	128	103	78	61	44	27	10
2,160	2,180	233	207	182	157	131	106	81	63	46	29	12
2,180	2,200	236	210	185	160	134	109	84	65	48	31	14
2,200	2,220	239	213	188	163	137	112	87	67	50	33	16
2,220	2,240	242	216	191	166	140	115	90	69	52	35	18
2,240	2,260	245	219	194	169	143	118	93	71	54	37	20
2,260	2,280	248	222	197	172	146	121	96	73	56	39	22
2,280	2,300	251	225	200	175	149	124	99	75	58	41	24
2,300	2,320	254	228	203	178	152	127	102	77	60	43	26
2,320	2,340	257	231	206	181	155	130	105	79	62	45	28
2,340	2,360	260	234	209	184	158	133	108	82	64	47	30
2,360	2,380	263	237	212	187	161	136	111	85	66	49	32
2,380	2,400	266	240	215	190	164	139	114	88	68	51	34
2,400	2,420	269	243	218	193	167	142	117	91	70	53	36
2,420	2,440	272	246	221	196	170	145	120	94	72	55	38
2,440	2,460	275	249	224	199	173	148	123	97	74	57	40
2,460	2,480	278	252	227	202	176	151	126	100	76	59	42
2,480	2,500	281	255	230	205	179	154	129	103	78	61	44
2,500	2,520	284	258	233	208	182	157	132	106	81	63	46
2,520	2,540	287	261	236	211	185	160	135	109	84	65	48
2,540	2,560	290	264	239	214	188	163	138	112	87	67	50
2,560	2,580	293	267	242	217	191	166	141	115	90	69	52
2,580	2,600	296	270	245	220	194	169	144	118	93	71	54
2,600	2,620	299	273	248	223	197	172	147	121	96	73	56
2,620	2,640	302	276	251	226	200	175	150	124	99	75	58
2,640	2,660	305	279	254	229	203	178	153	127	102	77	60
2,660	2,680	308	282	257	232	206	181	156	130	105	80	62
2,680	2,700	311	285	260	235	209	184	159	133	108	83	64
2,700	2,720	314	288	263	238	212	187	162	136	111	86	66
2,720	2,740	317	291	266	241	215	190	165	139	114	89	68
2,740	2,760	320	294	269	244	218	193	168	142	117	92	70
2,760	2,780	323	297	272	247	221	196	171	145	120	95	72
2,780	2,800	326	300	275	250	224	199	174	148	123	98	74
2,800	2,820	329	303	278	253	227	202	177	151	126	101	76
2,820	2,840	332	306	281	256	230	205	180	154	129	104	78
2,840	2,860	335	309	284	259	233	208	183	157	132	107	81
2,860	2,880	338	312	287	262	236	211	186	160	135	110	84
2,880	2,900	341	315	290	265	239	214	189	163	138	113	87
2,900	2,920	344	318	293	268	242	217	192	166	141	116	90
2,920	2,940	347	321	296	271	245	220	195	169	144	119	93

A) $91.00

B) $88.00

C) $113.00

D) $69.00

23) Ramani earned $1,698.50 during the most recent biweekly pay period. He contributes $100 to his 401(k) plan. He is married and claims 3 withholding allowances. Based on the following table, how much Federal income tax should be withheld from his pay?

Wage Bracket Method Tables for Income Tax Withholding MARRIED Persons-BIWEEKLY Payroll Period (For Wages Paid through December 31, 2017)
And the wages are		And the number of withholding allowances claimed is-
At least	But less than	0	1	2	3	4	5	6	7	8	9	10
		The amount of income tax to be withheld is-
$1,500	$1,520	$141	$117	$94	$71	$55	$40	$24	$9	$0	$0	$0
1,520	1,540	144	120	97	74	57	42	26	11	0	0	0
1,540	1,560	147	123	100	77	59	44	28	13	0	0	0
1,560	1,580	150	126	103	80	61	46	30	15	0	0	0
1,580	1,600	153	129	106	83	63	48	32	17	1	0	0
1,600	1,620	156	132	109	86	65	50	34	19	3	0	0
1,620	1,640	159	135	112	89	67	52	36	21	5	0	0
1,640	1,660	162	138	115	92	69	54	38	23	7	0	0
1,660	1,680	165	141	118	95	71	56	40	25	9	0	0
1,680	1,700	168	144	121	98	74	58	42	27	11	0	0
1,700	1,720	171	147	124	101	77	60	44	29	13	0	0
1,720	1,740	174	150	127	104	80	62	46	31	15	0	0
1,740	1,760	177	153	130	107	83	64	48	33	17	2	0
1,760	1,780	180	156	133	110	86	66	50	35	19	4	0
1,780	1,800	183	159	136	113	89	68	52	37	21	6	0
1,800	1,820	186	162	139	116	92	70	54	39	23	8	0
1,820	1,840	189	165	142	119	95	72	56	41	25	10	0
1,840	1,860	192	168	145	122	98	75	58	43	27	12	0
1,860	1,880	195	171	148	125	101	78	60	45	29	14	0
1,880	1,900	198	174	151	128	104	81	62	47	31	16	0
1,900	1,920	201	177	154	131	107	84	64	49	33	18	2
1,920	1,940	204	180	157	134	110	87	66	51	35	20	4
1,940	1,960	207	183	160	137	113	90	68	53	37	22	6
1,960	1,980	210	186	163	140	116	93	70	55	39	24	8
1,980	2,000	213	189	166	143	119	96	73	57	41	26	10
2,000	2,020	216	192	169	146	122	99	76	59	43	28	12
2,020	2,040	219	195	172	149	125	102	79	61	45	30	14
2,040	2,060	222	198	175	152	128	105	82	63	47	32	16
2,060	2,080	225	201	178	155	131	108	85	65	49	34	18
2,080	2,100	228	204	181	158	134	111	88	67	51	36	20
2,100	2,120	231	207	184	161	137	114	91	69	53	38	22
2,120	2,140	234	210	187	164	140	117	94	71	55	40	24
2,140	2,160	237	213	190	167	143	120	97	73	57	42	26
2,160	2,180	240	216	193	170	146	123	100	76	59	44	28
2,180	2,200	243	219	196	173	149	126	103	79	61	46	30
2,200	2,220	246	222	199	176	152	129	106	82	63	48	32
2,220	2,240	249	225	202	179	155	132	109	85	65	50	34
2,240	2,260	252	228	205	182	158	135	112	88	67	52	36
2,260	2,280	255	231	208	185	161	138	115	91	69	54	38
2,280	2,300	258	234	211	188	164	141	118	94	71	56	40
2,300	2,320	261	237	214	191	167	144	121	97	74	58	42
2,320	2,340	264	240	217	194	170	147	124	100	77	60	44
2,340	2,360	267	243	220	197	173	150	127	103	80	62	46
2,360	2,380	270	246	223	200	176	153	130	106	83	64	48
2,380	2,400	273	249	226	203	179	156	133	109	86	66	50
2,400	2,420	276	252	229	206	182	159	136	112	89	68	52
2,420	2,440	279	255	232	209	185	162	139	115	92	70	54
2,440	2,460	282	258	235	212	188	165	142	118	95	72	56
2,460	2,480	285	261	238	215	191	168	145	121	98	74	58
2,480	2,500	288	264	241	218	194	171	148	124	101	77	60
2,500	2,520	291	267	244	221	197	174	151	127	104	80	62
2,520	2,540	294	270	247	224	200	177	154	130	107	83	64
2,540	2,560	297	273	250	227	203	180	157	133	110	86	66
2,560	2,580	300	276	253	230	206	183	160	136	113	89	68
2,580	2,600	303	279	256	233	209	186	163	139	116	92	70
2,600	2,620	306	282	259	236	212	189	166	142	119	95	72
2,620	2,640	309	285	262	239	215	192	169	145	122	98	75
2,640	2,660	312	288	265	242	218	195	172	148	125	101	78
2,660	2,680	315	291	268	245	221	198	175	151	128	104	81
2,680	2,700	318	294	271	248	224	201	178	154	131	107	84
2,700	2,720	321	297	274	251	227	204	181	157	134	110	87
2,720	2,740	324	300	277	254	230	207	184	160	137	113	90
2,740	2,760	327	303	280	257	233	210	187	163	140	116	93
2,760	2,780	330	306	283	260	236	213	190	166	143	119	96
2,780	2,800	333	309	286	263	239	216	193	169	146	122	99
2,800	2,820	336	312	289	266	242	219	196	172	149	125	102
2,820	2,840	339	315	292	269	245	222	199	175	152	128	105
2,840	2,860	342	318	295	272	248	225	202	178	155	131	108
2,860	2,880	345	321	298	275	251	228	205	181	158	134	111

A) $124.00

B) $101.00

C) $98.00

D) $83.00

24) Caroljane earned $1,120 during the most recent pay biweekly pay period. She contributes 4% of her gross pay to her 401(k) plan. She is single and has 1 withholding allowance. Based on the following table, how much Federal income tax should be withheld from her pay?

Wage Bracket Method Tables for Income Tax Withholding SINGLE Persons-BIWEEKLY Payroll Period (For Wages Paid through December 31,2017)
And the wages are		And the number of withholding allowances claimed is-
At least	But less than		0	1	2	3	4	5	6	7	8	9	10
			The amount of income tax to be withheld is-
$800	$820		$90	$67	$44	$25	$10	$0	$0	$0	$0	$0	$0
820	840		93	70	47	27	12	0	0	0	0	0	0
840	860		96	73	50	29	14	0	0	0	0	0	0
860	880		99	76	53	31	16	0	0	0	0	0	0
880	900		102	79	56	33	18	2	0	0	0	0	0
900	920		105	82	59	35	20	4	0	0	0	0	0
920	940		108	85	62	38	22	6	0	0	0	0	0
940	960		111	88	65	41	24	8	0	0	0	0	0
960	980		114	91	68	44	26	10	0	0	0	0	0
980	1,000		117	94	71	47	28	12	0	0	0	0	0
1,000	1,020		120	97	74	50	30	14	0	0	0	0	0
1,020	1,040		123	100	77	53	32	16	1	0	0	0	0
1,040	1,060		126	103	80	56	34	18	3	0	0	0	0
1,060	1,080		129	106	83	59	36	20	5	0	0	0	0
1,080	1,100		132	109	86	62	39	22	7	0	0	0	0
1,100	1,120		135	112	89	65	42	24	9	0	0	0	0
1,120	1,140		138	115	92	68	45	26	11	0	0	0	0
1,140	1,160		141	118	95	71	48	28	13	0	0	0	0
1,160	1,180		144	121	98	74	51	30	15	0	0	0	0
1,180	1,200		147	124	101	77	54	32	17	1	0	0	0
1,200	1,220		150	127	104	80	57	34	19	3	0	0	0
1,220	1,240		153	130	107	83	60	36	21	5	0	0	0
1,240	1,260		156	133	110	86	63	39	23	7	0	0	0
1,260	1,280		159	136	113	89	66	42	25	9	0	0	0
1,280	1,300		162	139	116	92	69	45	27	11	0	0	0
1,300	1,320		165	142	119	95	72	48	29	13	0	0	0
1,320	1,340		168	145	122	98	75	51	31	15	0	0	0
1,340	1,360		171	148	125	101	78	54	33	17	2	0	0
1,360	1,380		174	151	128	104	81	57	35	19	4	0	0
1,380	1,400		177	154	131	107	84	60	37	21	6	0	0
1,400	1,420		180	157	134	110	87	63	40	23	8	0	0
1,420	1,440		183	160	137	113	90	66	43	25	10	0	0
1,440	1,460		186	163	140	116	93	69	46	27	12	0	0
1,460	1,480		189	166	143	119	96	72	49	29	14	0	0
1,480	1,500		192	169	146	122	99	75	52	31	16	0	0
1,500	1,520		195	172	149	125	102	78	55	33	18	2	0
1,520	1,540		198	175	152	128	105	81	58	35	20	4	0
1,540	1,560		201	178	155	131	108	84	61	38	22	6	0
1,560	1,580		206	181	158	134	111	87	64	41	24	8	0
1,580	1,600		211	184	161	137	114	90	67	44	26	10	0
1,600	1,620		216	187	164	140	117	93	70	47	28	12	0
1,620	1,640		221	190	167	143	120	96	73	50	30	14	0
1,640	1,660		226	193	170	146	123	99	76	53	32	16	0
1,660	1,680		231	196	173	149	126	102	79	56	34	18	2
1,680	1,700		236	199	176	152	129	105	82	59	36	20	4
1,700	1,720		241	203	179	155	132	108	85	62	38	22	6
1,720	1,740		246	208	182	158	135	111	88	65	41	24	8
1,740	1,760		251	213	185	161	138	114	91	68	44	26	10
1,760	1,780		256	218	188	164	141	117	94	71	47	28	12
1,780	1,800		261	223	191	167	144	120	97	74	50	30	14
1,800	1,820		266	228	194	170	147	123	100	77	53	32	16
1,820	1,840		271	233	197	173	150	126	103	80	56	34	18
1,840	1,860		276	238	200	176	153	129	106	83	59	36	20
1,860	1,880		281	243	204	179	156	132	109	86	62	39	22
1,880	1,900		286	248	209	182	159	135	112	89	65	42	24
1,900	1,920		291	253	214	185	162	138	115	92	68	45	26
1,920	1,940		296	258	219	188	165	141	118	95	71	48	28
1,940	1,960		301	263	224	191	168	144	121	98	74	51	30
1,960	1,980		306	268	229	194	171	147	124	101	77	54	32
1,980	2,000		311	273	234	197	174	150	127	104	80	57	34
2,000	2,020		316	278	239	200	177	153	130	107	83	60	37
2,020	2,040		321	283	244	205	180	156	133	110	86	63	40
2,040	2,060		326	288	249	210	183	159	136	113	89	66	43
2,060	2,080		331	293	254	215	186	162	139	116	92	69	46
2,080	2,100		336	298	259	220	189	165	142	119	95	72	49

A) $115.00

B) $109.00

C) $121.00

D) $106.00

25) Julio is single with 1 withholding allowance. He earned $1,025.00 during the most recent semimonthly pay period. He needs to decide between contributing 3% and $30 to his 401(k) plan. If he chooses the method that results in the lowest taxable income, how much will be withheld for Federal income tax (based on the following table)?

Wage Bracket Method Tables for Income Tax Withholding SINGLE Persons-SEMIMONTHLY Payroll Period (For Wages Paid through December 31,2017)
And the wages are		And the number of withholding allowances claimed is-
At least	But less than		0	1	2	3	4	5	6	7	8	9	10
			The amount of income tax to be withheld is-
$800	$820		$88	$62	$38	$21	$4	$0	$0	$0	$0	$0	$0
820	840		91	65	40	23	6	0	0	0	0	0	0
840	860		94	68	43	25	8	0	0	0	0	0	0
860	880		97	71	46	27	10	0	0	0	0	0	0
880	900		100	74	49	29	12	0	0	0	0	0	0
900	920		103	77	52	31	14	0	0	0	0	0	0
920	940		106	80	55	33	16	0	0	0	0	0	0
940	960		109	83	58	35	18	1	0	0	0	0	0
960	980		112	86	61	37	20	3	0	0	0	0	0
980	1,000		115	89	64	39	22	5	0	0	0	0	0
1,000	1,020		118	92	67	42	24	7	0	0	0	0	0
1,020	1,040		121	95	70	45	26	9	0	0	0	0	0
1,040	1,060		124	98	73	48	28	11	0	0	0	0	0
1,060	1,080		127	101	76	51	30	13	0	0	0	0	0
1,080	1,100		130	104	79	54	32	15	0	0	0	0	0
1,100	1,120		133	107	82	57	34	17	0	0	0	0	0
1,120	1,140		136	110	85	60	36	19	2	0	0	0	0
1,140	1,160		139	113	88	63	38	21	4	0	0	0	0
1,160	1,180		142	116	91	66	40	23	6	0	0	0	0
1,180	1,200		145	119	94	69	43	25	8	0	0	0	0
1,200	1,220		148	122	97	72	46	27	10	0	0	0	0
1,220	1,240		151	125	100	75	49	29	12	0	0	0	0
1,240	1,260		154	128	103	78	52	31	14	0	0	0	0
1,260	1,280		157	131	106	81	55	33	16	0	0	0	0
1,280	1,300		160	134	109	84	58	35	18	1	0	0	0
1,300	1,320		163	137	112	87	61	37	20	3	0	0	0
1,320	1,340		166	140	115	90	64	39	22	5	0	0	0
1,340	1,360		169	143	118	93	67	42	24	7	0	0	0
1,360	1,380		172	146	121	96	70	45	26	9	0	0	0
1,380	1,400		175	149	124	99	73	48	28	11	0	0	0
1,400	1,420		178	152	127	102	76	51	30	13	0	0	0
1,420	1,440		181	155	130	105	79	54	32	15	0	0	0
1,440	1,460		184	158	133	108	82	57	34	17	0	0	0
1,460	1,480		187	161	136	111	85	60	36	19	2	0	0
1,480	1,500		190	164	139	114	88	63	38	21	4	0	0
1,500	1,520		193	167	142	117	91	66	41	23	6	0	0
1,520	1,540		196	170	145	120	94	69	44	25	8	0	0
1,540	1,560		199	173	148	123	97	72	47	27	10	0	0
1,560	1,580		202	176	151	126	100	75	50	29	12	0	0
1,580	1,600		205	179	154	129	103	78	53	31	14	0	0
1,600	1,620		208	182	157	132	106	81	56	33	16	0	0
1,620	1,640		211	185	160	135	109	84	59	35	18	2	0
1,640	1,660		214	188	163	138	112	87	62	37	20	4	0
1,660	1,680		217	191	166	141	115	90	65	40	22	6	0
1,680	1,700		221	194	169	144	118	93	68	43	24	8	0
1,700	1,720		226	197	172	147	121	96	71	46	26	10	0
1,720	1,740		231	200	175	150	124	99	74	49	28	12	0
1,740	1,760		236	203	178	153	127	102	77	52	30	14	0
1,760	1,780		241	206	181	156	130	105	80	55	32	16	0
1,780	1,800		246	209	184	159	133	108	83	58	34	18	1
1,800	1,820		251	212	187	162	136	111	86	61	36	20	3
1,820	1,840		256	215	190	165	139	114	89	64	38	22	5
1,840	1,860		261	219	193	168	142	117	92	67	41	24	7
1,860	1,880		266	224	196	171	145	120	95	70	44	26	9
1,880	1,900		271	229	199	174	148	123	98	73	47	28	11
1,900	1,920		276	234	202	177	151	126	101	76	50	30	13
1,920	1,940		281	239	205	180	154	129	104	79	53	32	15
1,940	1,960		286	244	208	183	157	132	107	82	56	34	17
1,960	1,980		291	249	211	186	160	135	110	85	59	36	19
1,980	2,000		296	254	214	189	163	138	113	88	62	38	21
2,000	2,020		301	259	217	192	166	141	116	91	65	40	23
2,020	2,040		306	264	222	195	169	144	119	94	68	43	25
2,040	2,060		311	269	227	198	172	147	122	97	71	46	27
2,060	2,080		316	274	232	201	175	150	125	100	74	49	29
2,080	2,100		321	279	237	204	178	153	128	103	77	52	31
2,100	2,120		326	284	242	207	181	156	131	106	80	55	33
2,120	2,140		331	289	247	210	184	159	134	109	83	58	35

A) $77.00

B) $86.00

C) $92.00

D) Both yield the same tax amount

26) Andie earned $680.20 during the most recent weekly pay period. She is single with 3 withholding allowances and needs to decide between contributing 2.5% and $25 to her 401(k) plan. If she chooses the method that results in the lowest taxable income, how much will be withheld for Federal income tax (based on the following table)?

Wage Bracket Method Tables for Income Tax Withholding SINGLE Persons-WEEKLY Payroll Period (For Wages Paid through December 31,2017)
And the wages are		And the number of withholding allowances claimed is-
At least	But less than	0	1	2	3	4	5	6	7	8	9	10
		The amount of income tax to be withheld is-
$600	$610	$75	$63	$52	$40	$28	$17	$9	$2	$0	$0	$0
610	620	77	65	53	42	30	18	10	3	0	0	0
620	630	78	66	55	43	31	20	11	4	0	0	0
630	640	80	68	56	45	33	21	12	5	0	0	0
640	650	81	69	58	46	34	23	13	6	0	0	0
650	660	83	71	59	48	36	24	14	7	0	0	0
660	670	84	72	61	49	37	26	15	8	0	0	0
670	680	86	74	62	51	39	27	16	9	1	0	0
680	690	87	75	64	52	40	29	17	10	2	0	0
690	700	89	77	65	54	42	30	19	11	3	0	0
700	710	90	78	67	55	43	32	20	12	4	0	0
710	720	92	80	68	57	45	33	22	13	5	0	0
720	730	93	81	70	58	46	35	23	14	6	0	0
730	740	95	83	71	60	48	36	25	15	7	0	0
740	750	96	84	73	61	49	38	26	16	8	0	0
750	760	98	86	74	63	51	39	28	17	9	1	0
760	770	99	87	76	64	52	41	29	18	10	2	0
770	780	101	89	77	66	54	42	31	19	11	3	0
780	790	103	90	79	67	55	44	32	20	12	4	0
790	800	106	92	80	69	57	45	34	22	13	5	0
800	810	108	93	82	70	58	47	35	23	14	6	0
810	820	111	95	83	72	60	48	37	25	15	7	0
820	830	113	96	85	73	61	50	38	26	16	8	0
830	840	116	98	86	75	63	51	40	28	17	9	1
840	850	118	99	88	76	64	53	41	29	18	10	2
850	860	121	101	89	78	66	54	43	31	19	11	3
860	870	123	104	91	79	67	56	44	32	21	12	4
870	880	126	106	92	81	69	57	46	34	22	13	5
880	890	128	109	94	82	70	59	47	35	24	14	6
890	900	131	111	95	84	72	60	49	37	25	15	7
900	910	133	114	97	85	73	62	50	38	27	16	8
910	920	136	116	98	87	75	63	52	40	28	17	9
920	930	138	119	100	88	76	65	53	41	30	18	10
930	940	141	121	102	90	78	66	55	43	31	20	11
940	950	143	124	104	91	79	68	56	44	33	21	12
950	960	146	126	107	93	81	69	58	46	34	23	13
960	970	148	129	109	94	82	71	59	47	36	24	14
970	980	151	131	112	96	84	72	61	49	37	26	15
980	990	153	134	114	97	85	74	62	50	39	27	16
990	1,000	156	136	117	99	87	75	64	52	40	29	17
1,000	1,010	158	139	119	100	88	77	65	53	42	30	18
1,010	1,020	161	141	122	102	90	78	67	55	43	32	20
1,020	1,030	163	144	124	105	91	80	68	56	45	33	21
1,030	1,040	166	146	127	107	93	81	70	58	46	35	23
1,040	1,050	168	149	129	110	94	83	71	59	48	36	24
1,050	1,060	171	151	132	112	96	84	73	61	49	38	26
1,060	1,070	173	154	134	115	97	86	74	62	51	39	27
1,070	1,080	176	156	137	117	99	87	76	64	52	41	29
1,080	1,090	178	159	139	120	100	89	77	65	54	42	30
1,090	1,100	181	161	142	122	103	90	79	67	55	44	32
1,100	1,110	183	164	144	125	105	92	80	68	57	45	33
1,110	1,120	186	166	147	127	108	93	82	70	58	47	35
1,120	1,130	188	169	149	130	110	95	83	71	60	48	36
1,130	1,140	191	171	152	132	113	96	85	73	61	50	38
1,140	1,150	193	174	154	135	115	98	86	74	63	51	39
1,150	1,160	196	176	157	137	118	99	88	76	64	53	41
1,160	1,170	198	179	159	140	120	101	89	77	66	54	42
1,170	1,180	201	181	162	142	123	103	91	79	67	56	44
1,180	1,190	203	184	164	145	125	106	92	80	69	57	45
1,190	1,200	206	186	167	147	128	108	94	82	70	59	47
1,200	1,210	208	189	169	150	130	111	95	83	72	60	48
1,210	1,220	211	191	172	152	133	113	97	85	73	62	50
1,220	1,230	213	194	174	155	135	116	98	86	75	63	51
1,230	1,240	216	196	177	157	138	118	100	88	76	65	53
1,240	1,250	218	199	179	160	140	121	101	89	78	66	54

A) $61.00

B) $59.00

C) $48.00

D) $49.00

27) Olga earned $1,558.00 during the most recent weekly pay period. She is single with 2 withholding allowances and no pre-tax deductions. Using the percentage method, compute Olga's federal income tax for the period. (Do not round intermediate calculations. Round final answer to two decimal places.)

Table 5. Percentage Method-2017 Amount for one Withholding Allowance

Payroll Period	One Withholding Allowance
Weekly	$77.90
Biweekly	155.80
Semimonthly	168.80
Monthly	337.50
Quarterly	1,012.50
Semiannually	2,025.00
Annually	4,050.00
Daily or miscellaneous (each day of the payroll period)	15.60

Percentage Method Tables for Income Tax Withholding
(For Wages Paid in 2017)
TABLE 1-WEEKLY Payroll Period
(a) SINGLE person (including head of household)−				(b) MARRIED person−
If the amount of wages (after subtracting withholding allowances) is:		The amount of income tax to withhold is:		If the amount of wages (after subtracting withholding allowances) is:		The amount of income tax to withhold is:
Not over $44……		$0		Not over $166…		$0
Over−	But not over−	of excess over−		Over−	But not over−	of excess over−
$44	−$224	$0.00 plus 10%	−$44	$166	−$525	$0.00 plus 10%	−$166
$224	−$774	$18.00 plus 15%	−$224	$525	−$1,626	$35.90 plus 15%	−$525
$774	−$1,812	$100.50 plus 25%	−$774	$1,626	−$3,111	$201.05 plus 25%	−$1,626
$1,812	−$3,730	$360.00 plus 28%	−$1,812	$3,111	−$4,654	$572.30 plus 28%	−$3,111
$3,730	−$8,058	$897.04 plus 33%	−$3,730	$4,654	−$8,180	$1,004.34 plus 33%	−$4,654
$8,058	−$8,090	$2,325.28 plus 35%	−$8,058	$8,180	−$9,218	$2,167.92 plus 35%	−$8,180
$8,090		$2,336.48 plus 39.6%	−$8,090	$9,218		$2,531.22 plus 39.6%	−$9,218

A) $277.93

B) $339.25

C) $257.55

D) $314.75

28) Warren is a married employee with six withholding allowances. During the most recent biweekly pay period, he earned $9,450.00. Using the percentage method, compute Warren's federal income tax. (Do not round interim calculations, only round final answer to two decimal points.)

Table 5. Percentage Method-2017 Amount for one Withholding Allowance

Payroll Period	One Withholding Allowance
Weekly	$77.90
Biweekly	155.80
Semimonthly	168.80
Monthly	337.50
Quarterly	1,012.50
Semiannually	2,025.00
Annually	4,050.00
Daily or miscellaneous (each day of the payroll period)	15.60

TABLE 2-BIWEEKLY Payroll Period
(a) SINGLE person (including head of household)—					(b) MARRIED person—
If the amount of wages (after subtracting withholding allowances) is:		The amount of income tax to withhold is:		If the amount of wages (after subtracting withholding allowances) is:			The amount of income tax to withhold is:
Not over $88........		$0		Not over $333.......			$0
Over-	But not over-	of excess over-		Over-		But not over-	of excess over-
$88	-$447	$0.00 plus 10%	-$88	$333		-$1,050	$0.00 plus 10%	-$333
$447	-$1,548	$35.90 plus 15%	-$447	$1,050		-$3,252	$71.70 plus 15%	-$1,050
$1,548	-$3,623	$201.05 plus 25%	-$1,548	$3,252		-$6,221	$402.00 plus 25%	-$3,252
$3,623	-$7,460	$719.80 plus 28%	-$3,623	$6,221		-$9,308	$1,144.25 plus 28%	-$6,221
$7,460	-$16,115	$1,794.16 plus 33%	-$7,460	$9,308		-$16,360	$2,008.61 plus 33%	-$9,308
$16,115	-$16,181	$4,650.31 plus 35%	-$16,115	$16,360		-$18,437	$4,335.77 plus 35%	-$16,360
$16,181		$4,673.41 plus 39.6%	-$16,181	$18,437			$5,062.72 plus 39.6%	-$18,437

A) $2,490.15

B) $2,156.90

C) $2,012.91

D) $1,786.63

29) Adam is a part-time employee who earned $495.00 during the most recent pay period. He is married with two withholding allowances. Prior to this pay period, his year-to-date pay is $6,492.39. How much should be withheld from Adam's gross pay for Social Security tax?

A) $40.02

B) $30.69

C) $37.92

D) $28.46

30) Jeannie is an adjunct faculty at a local college, where she earned $680.00 during the most recent semimonthly pay period. Her prior year-to-date pay is $18,540. She is single and has one withholding allowance. What is her Social Security tax for the pay period?

A) $48.02

B) $39.24

C) $44.18

D) $42.16

31) Paolo is a part-time security guard for a local facility. He earned $298.50 during the most recent weekly pay period and has earned $5,296.00 year-to-date. He is married with four withholding allowances. What is his Medicare tax liability for the pay period?

A) $43.23

B) $10.54

C) $8.65

D) $4.33

32) Steve is a full-time exempt employee at a local electricity co-operative. He earns an annual salary of $43,325 and is paid biweekly. What is his Social Security tax deduction for each pay period? (Do not round interim calculations, only round final answer to two decimal points.)

A) $123.95

B) $103.31

C) $98.67

D) $106.34

33) Renee is a salaried exempt employee who earns an annual salary of $64,200, which is paid semimonthly. She is married with four withholding allowances. What is her total FICA tax liability per pay period? (Do not round interim calculations, only round final answer to two decimal points.)

A) $165.85

B) $38.79

C) $204.64

D) $409.28

34) Natalia is a full-time exempt employee who earns $215,000 annually, paid monthly. Her year-to-date pay as of November 30 is $197,083.33. How much will be withheld from Natalia for FICA taxes for the December 31 pay date? (Social Security maximum wage is $127,200. Do not round interim calculations, only round final answer to two decimal points.)

A) $292.04

B) $394.79

C) $1,370.63

D) $421.04

35) Wyatt is a full-time exempt music engineer who earns $130,000 annually and is paid semimonthly. As of December 15, his year-to-date gross pay was $124,583.33. How much will be withheld for FICA taxes for the December 31 pay date? (Social Security maximum wage is $127,200. Do not round interim calculations, only round final answer to two decimal points.)

A) $335.83

B) $414.37

C) $212.88

D) $240.78

36) Melody is a full-time employee in Sioux City, South Dakota, who earns $3,600 per month and is paid semimonthly. She is married with 1 withholding allowance (use the wage-bracket tables). She has a qualified health insurance deduction of $50 per pay period and contributes 3% to her 401(k), both of which are pre-tax deductions. What is her net pay? (Round your intermediate calculations and final answer to 2 decimal places.)

Wage Bracket Method Tables for Income Tax Withholding MARRIED Persons-SEMIMONTHLY Payroll Period (For Wages Paid through December 31,2017)
And the wages are		And the number of withholding allowances claimed is-
At least	But less than	0	1	2	3	4	5	6	7	8	9	10
		The amount of income tax to be withheld is-
$1,600	$1,620	$149	$123	$98	$74	$57	$41	$24	$7	$0	$0	$0
1,620	1,640	152	126	101	76	59	43	26	9	0	0	0
1,640	1,660	155	129	104	79	61	45	28	11	0	0	0
1,660	1,680	158	132	107	82	63	47	30	13	0	0	0
1,680	1,700	161	135	110	85	65	49	32	15	0	0	0
1,700	1,720	164	138	113	88	67	51	34	17	0	0	0
1,720	1,740	167	141	116	91	69	53	36	19	2	0	0
1,740	1,760	170	144	119	94	71	55	38	21	4	0	0
1,760	1,780	173	147	122	97	73	57	40	23	6	0	0
1,780	1,800	176	150	125	100	75	59	42	25	8	0	0
1,800	1,820	179	153	128	103	77	61	44	27	10	0	0
1,820	1,840	182	156	131	106	80	63	46	29	12	0	0
1,840	1,860	185	159	134	109	83	65	48	31	14	0	0
1,860	1,880	188	162	137	112	86	67	50	33	16	0	0
1,880	1,900	191	165	140	115	89	69	52	35	18	1	0
1,900	1,920	194	168	143	118	92	71	54	37	20	3	0
1,920	1,940	197	171	146	121	95	73	56	39	22	5	0
1,940	1,960	200	174	149	124	98	75	58	41	24	7	0
1,960	1,980	203	177	152	127	101	77	60	43	26	9	0
1,980	2,000	206	180	155	130	104	79	62	45	28	11	0
2,000	2,020	209	183	158	133	107	82	64	47	30	13	0
2,020	2,040	212	186	161	136	110	85	66	49	32	15	0
2,040	2,060	215	189	164	139	113	88	68	51	34	17	0
2,060	2,080	218	192	167	142	116	91	70	53	36	19	2
2,080	2,100	221	195	170	145	119	94	72	55	38	21	4
2,100	2,120	224	198	173	148	122	97	74	57	40	23	6
2,120	2,140	227	201	176	151	125	100	76	59	42	25	8
2,140	2,160	230	204	179	154	128	103	78	61	44	27	10
2,160	2,180	233	207	182	157	131	106	81	63	46	29	12
2,180	2,200	236	210	185	160	134	109	84	65	48	31	14
2,200	2,220	239	213	188	163	137	112	87	67	50	33	16
2,220	2,240	242	216	191	166	140	115	90	69	52	35	18
2,240	2,260	245	219	194	169	143	118	93	71	54	37	20
2,260	2,280	248	222	197	172	146	121	96	73	56	39	22
2,280	2,300	251	225	200	175	149	124	99	75	58	41	24
2,300	2,320	254	228	203	178	152	127	102	77	60	43	26
2,320	2,340	257	231	206	181	155	130	105	79	62	45	28
2,340	2,360	260	234	209	184	158	133	108	82	64	47	30
2,360	2,380	263	237	212	187	161	136	111	85	66	49	32
2,380	2,400	266	240	215	190	164	139	114	88	68	51	34
2,400	2,420	269	243	218	193	167	142	117	91	70	53	36
2,420	2,440	272	246	221	196	170	145	120	94	72	55	38
2,440	2,460	275	249	224	199	173	148	123	97	74	57	40
2,460	2,480	278	252	227	202	176	151	126	100	76	59	42
2,480	2,500	281	255	230	205	179	154	129	103	78	61	44
2,500	2,520	284	258	233	208	182	157	132	106	81	63	46
2,520	2,540	287	261	236	211	185	160	135	109	84	65	48
2,540	2,560	290	264	239	214	188	163	138	112	87	67	50
2,560	2,580	293	267	242	217	191	166	141	115	90	69	52
2,580	2,600	296	270	245	220	194	169	144	118	93	71	54
2,600	2,620	299	273	248	223	197	172	147	121	96	73	56
2,620	2,640	302	276	251	226	200	175	150	124	99	75	58
2,640	2,660	305	279	254	229	203	178	153	127	102	77	60
2,660	2,680	308	282	257	232	206	181	156	130	105	80	62
2,680	2,700	311	285	260	235	209	184	159	133	108	83	64
2,700	2,720	314	288	263	238	212	187	162	136	111	86	66
2,720	2,740	317	291	266	241	215	190	165	139	114	89	68
2,740	2,760	320	294	269	244	218	193	168	142	117	92	70
2,760	2,780	323	297	272	247	221	196	171	145	120	95	72
2,780	2,800	326	300	275	250	224	199	174	148	123	98	74
2,800	2,820	329	303	278	253	227	202	177	151	126	101	76
2,820	2,840	332	306	281	256	230	205	180	154	129	104	78
2,840	2,860	335	309	284	259	233	208	183	157	132	107	81
2,860	2,880	338	312	287	262	236	211	186	160	135	110	84
2,880	2,900	341	315	290	265	239	214	189	163	138	113	87
2,900	2,920	344	318	293	268	242	217	192	166	141	116	90
2,920	2,940	347	321	296	271	245	220	195	169	144	119	93

A) $1,696.00

B) $1,524.27

C) $1,427.12

D) $1,394.87

37) Julian is a part-time nonexempt employee in Nashville, Tennessee, who earns $21.50 per hour. During the last biweekly pay period he worked 45 hours, 5 of which are considered overtime. He is single with one withholding allowance (use the wage-bracket table). What is his net pay? (Do not round interim calculations, only round final answer to two decimal points.)

Wage Bracket Method Tables for Income Tax Withholding SINGLE Persons-BIWEEKLY Payroll Period (For Wages Paid through December 31,2017)
And the wages are		And the number of withholding allowances claimed is-
At least	But less than		0	1	2	3	4	5	6	7	8	9	10
			The amount of income tax to be withheld is-
$800	$820		$90	$67	$44	$25	$10	$0	$0	$0	$0	$0	$0
820	840		93	70	47	27	12	0	0	0	0	0	0
840	860		96	73	50	29	14	0	0	0	0	0	0
860	880		99	76	53	31	16	0	0	0	0	0	0
880	900		102	79	56	33	18	2	0	0	0	0	0
900	920		105	82	59	35	20	4	0	0	0	0	0
920	940		108	85	62	38	22	6	0	0	0	0	0
940	960		111	88	65	41	24	8	0	0	0	0	0
960	980		114	91	68	44	26	10	0	0	0	0	0
980	1,000		117	94	71	47	28	12	0	0	0	0	0
1,000	1,020		120	97	74	50	30	14	0	0	0	0	0
1,020	1,040		123	100	77	53	32	16	1	0	0	0	0
1,040	1,060		126	103	80	56	34	18	3	0	0	0	0
1,060	1,080		129	106	83	59	36	20	5	0	0	0	0
1,080	1,100		132	109	86	62	39	22	7	0	0	0	0
1,100	1,120		135	112	89	65	42	24	9	0	0	0	0
1,120	1,140		138	115	92	68	45	26	11	0	0	0	0
1,140	1,160		141	118	95	71	48	28	13	0	0	0	0
1,160	1,180		144	121	98	74	51	30	15	0	0	0	0
1,180	1,200		147	124	101	77	54	32	17	1	0	0	0
1,200	1,220		150	127	104	80	57	34	19	3	0	0	0
1,220	1,240		153	130	107	83	60	36	21	5	0	0	0
1,240	1,260		156	133	110	86	63	39	23	7	0	0	0
1,260	1,280		159	136	113	89	66	42	25	9	0	0	0
1,280	1,300		162	139	116	92	69	45	27	11	0	0	0
1,300	1,320		165	142	119	95	72	48	29	13	0	0	0
1,320	1,340		168	145	122	98	75	51	31	15	0	0	0
1,340	1,360		171	148	125	101	78	54	33	17	2	0	0
1,360	1,380		174	151	128	104	81	57	35	19	4	0	0
1,380	1,400		177	154	131	107	84	60	37	21	6	0	0
1,400	1,420		180	157	134	110	87	63	40	23	8	0	0
1,420	1,440		183	160	137	113	90	66	43	25	10	0	0
1,440	1,460		186	163	140	116	93	69	46	27	12	0	0
1,460	1,480		189	166	143	119	96	72	49	29	14	0	0
1,480	1,500		192	169	146	122	99	75	52	31	16	0	0
1,500	1,520		195	172	149	125	102	78	55	33	18	2	0
1,520	1,540		198	175	152	128	105	81	58	35	20	4	0
1,540	1,560		201	178	155	131	108	84	61	38	22	6	0
1,560	1,580		206	181	158	134	111	87	64	41	24	8	0
1,580	1,600		211	184	161	137	114	90	67	44	26	10	0
1,600	1,620		216	187	164	140	117	93	70	47	28	12	0
1,620	1,640		221	190	167	143	120	96	73	50	30	14	0
1,640	1,660		226	193	170	146	123	99	76	53	32	16	0
1,660	1,680		231	196	173	149	126	102	79	56	34	18	2
1,680	1,700		236	199	176	152	129	105	82	59	36	20	4
1,700	1,720		241	203	179	155	132	108	85	62	38	22	6
1,720	1,740		246	208	182	158	135	111	88	65	41	24	8
1,740	1,760		251	213	185	161	138	114	91	68	44	26	10
1,760	1,780		256	218	188	164	141	117	94	71	47	28	12
1,780	1,800		261	223	191	167	144	120	97	74	50	30	14
1,800	1,820		266	228	194	170	147	123	100	77	53	32	16
1,820	1,840		271	233	197	173	150	126	103	80	56	34	18
1,840	1,860		276	238	200	176	153	129	106	83	59	36	20
1,860	1,880		281	243	204	179	156	132	109	86	62	39	22
1,880	1,900		286	248	209	182	159	135	112	89	65	42	24
1,900	1,920		291	253	214	185	162	138	115	92	68	45	26
1,920	1,940		296	258	219	188	165	141	118	95	71	48	28
1,940	1,960		301	263	224	191	168	144	121	98	74	51	30
1,960	1,980		306	268	229	194	171	147	124	101	77	54	32
1,980	2,000		311	273	234	197	174	150	127	104	80	57	34
2,000	2,020		316	278	239	200	177	153	130	107	83	60	37
2,020	2,040		321	283	244	205	180	156	133	110	86	63	40
2,040	2,060		326	288	249	210	183	159	136	113	89	66	43
2,060	2,080		331	293	254	215	186	162	139	116	92	69	46
2,080	2,100		336	298	259	220	189	165	142	119	95	72	49

A) $818.40

B) $797.18

C) $825.99

D) $843.12

38) Disposable income is defined as:

A) An employee's net pay less living expenses like rent and utilities.

B) An employee's taxable income less Understand Post-Tax Deductions.

C) An employee's gross pay less Identify Pre-Tax Deductions.

D) An employee's pay after legally required deductions have been withheld.

39) Sammy contributes 4% of her salary to a 401(k) plan, $50 per pay period to a charitable contribution, $140 per pay period to union dues, and $50 per pay period to a section 125 qualified insurance plan offered by her employer. Which contributions must be taken on a post-tax basis? (Select all that apply.)

A) 401(k) contribution

B) Charitable contribution

C) Union dues

D) Section 125 insurance plan

40) Garnishments may include deductions from employee wages on a post-tax basis for items such as: (Select all that apply.)

A) Charitable contributions.

B) Consumer Credit liens.

C) Child Support payments.

D) Union Dues.

41) Why might an employee elect to have additional federal income tax withheld? (Select all that apply.)

A) The employee has more than one job.

B) The employee's spouse is employed.

C) The employee wishes to reduce income tax liability.

D) The employee wants to satisfy prior years' tax obligations.

42) Manju is a full-time exempt employee living in Illinois who earns $43,680 annually and is paid biweekly. She is married with three withholding allowances. What is the total of her Federal and state income tax deductions for the most recent pay period? (Use the wage bracket tables. Illinois state income tax rate is 3.75%.)

Wage Bracket Method Tables for Income Tax Withholding MARRIED Persons-BIWEEKLY Payroll Period (For Wages Paid through December 31, 2017)
And the wages are		And the number of withholding allowances claimed is-
At least	But less than	0	1	2	3	4	5	6	7	8	9	10
		The amount of income tax to be withheld is-
$1,500	$1,520	$141	$117	$94	$71	$55	$40	$24	$9	$0	$0	$0
1,520	1,540	144	120	97	74	57	42	26	11	0	0	0
1,540	1,560	147	123	100	77	59	44	28	13	0	0	0
1,560	1,580	150	126	103	80	61	46	30	15	0	0	0
1,580	1,600	153	129	106	83	63	48	32	17	1	0	0
1,600	1,620	156	132	109	86	65	50	34	19	3	0	0
1,620	1,640	159	135	112	89	67	52	36	21	5	0	0
1,640	1,660	162	138	115	92	69	54	38	23	7	0	0
1,660	1,680	165	141	118	95	71	56	40	25	9	0	0
1,680	1,700	168	144	121	98	74	58	42	27	11	0	0
1,700	1,720	171	147	124	101	77	60	44	29	13	0	0
1,720	1,740	174	150	127	104	80	62	46	31	15	0	0
1,740	1,760	177	153	130	107	83	64	48	33	17	2	0
1,760	1,780	180	156	133	110	86	66	50	35	19	4	0
1,780	1,800	183	159	136	113	89	68	52	37	21	6	0
1,800	1,820	186	162	139	116	92	70	54	39	23	8	0
1,820	1,840	189	165	142	119	95	72	56	41	25	10	0
1,840	1,860	192	168	145	122	98	75	58	43	27	12	0
1,860	1,880	195	171	148	125	101	78	60	45	29	14	0
1,880	1,900	198	174	151	128	104	81	62	47	31	16	0
1,900	1,920	201	177	154	131	107	84	64	49	33	18	2
1,920	1,940	204	180	157	134	110	87	66	51	35	20	4
1,940	1,960	207	183	160	137	113	90	68	53	37	22	6
1,960	1,980	210	186	163	140	116	93	70	55	39	24	8
1,980	2,000	213	189	166	143	119	96	73	57	41	26	10
2,000	2,020	216	192	169	146	122	99	76	59	43	28	12
2,020	2,040	219	195	172	149	125	102	79	61	45	30	14
2,040	2,060	222	198	175	152	128	105	82	63	47	32	16
2,060	2,080	225	201	178	155	131	108	85	65	49	34	18
2,080	2,100	228	204	181	158	134	111	88	67	51	36	20
2,100	2,120	231	207	184	161	137	114	91	69	53	38	22
2,120	2,140	234	210	187	164	140	117	94	71	55	40	24
2,140	2,160	237	213	190	167	143	120	97	73	57	42	26
2,160	2,180	240	216	193	170	146	123	100	76	59	44	28
2,180	2,200	243	219	196	173	149	126	103	79	61	46	30
2,200	2,220	246	222	199	176	152	129	106	82	63	48	32
2,220	2,240	249	225	202	179	155	132	109	85	65	50	34
2,240	2,260	252	228	205	182	158	135	112	88	67	52	36
2,260	2,280	255	231	208	185	161	138	115	91	69	54	38
2,280	2,300	258	234	211	188	164	141	118	94	71	56	40
2,300	2,320	261	237	214	191	167	144	121	97	74	58	42
2,320	2,340	264	240	217	194	170	147	124	100	77	60	44
2,340	2,360	267	243	220	197	173	150	127	103	80	62	46
2,360	2,380	270	246	223	200	176	153	130	106	83	64	48
2,380	2,400	273	249	226	203	179	156	133	109	86	66	50
2,400	2,420	276	252	229	206	182	159	136	112	89	68	52
2,420	2,440	279	255	232	209	185	162	139	115	92	70	54
2,440	2,460	282	258	235	212	188	165	142	118	95	72	56
2,460	2,480	285	261	238	215	191	168	145	121	98	74	58
2,480	2,500	288	264	241	218	194	171	148	124	101	77	60
2,500	2,520	291	267	244	221	197	174	151	127	104	80	62
2,520	2,540	294	270	247	224	200	177	154	130	107	83	64
2,540	2,560	297	273	250	227	203	180	157	133	110	86	66
2,560	2,580	300	276	253	230	206	183	160	136	113	89	68
2,580	2,600	303	279	256	233	209	186	163	139	116	92	70
2,600	2,620	306	282	259	236	212	189	166	142	119	95	72
2,620	2,640	309	285	262	239	215	192	169	145	122	98	75
2,640	2,660	312	288	265	242	218	195	172	148	125	101	78
2,660	2,680	315	291	268	245	221	198	175	151	128	104	81
2,680	2,700	318	294	271	248	224	201	178	154	131	107	84
2,700	2,720	321	297	274	251	227	204	181	157	134	110	87
2,720	2,740	324	300	277	254	230	207	184	160	137	113	90
2,740	2,760	327	303	280	257	233	210	187	163	140	116	93
2,760	2,780	330	306	283	260	236	213	190	166	143	119	96
2,780	2,800	333	309	286	263	239	216	193	169	146	122	99
2,800	2,820	336	312	289	266	242	219	196	172	149	125	102
2,820	2,840	339	315	292	269	245	222	199	175	152	128	105
2,840	2,860	342	318	295	272	248	225	202	178	155	131	108
2,860	2,880	345	321	298	275	251	228	205	181	158	134	111

A) $161

B) $162

C) $158

D) $166

43) Tierney is a full-time nonexempt salaried employee who earns $990 per biweekly pay period. She is single with 1 withholding allowance and both lives and works in Maryland. Assuming that she had no overtime, what is the total of her Federal and state taxes for a pay period? (Use the wage-bracket tables. Maryland state income rate is 2.0%. Round final answer to 2 decimal places.)

Wage Bracket Method Tables for Income Tax Withholding SINGLE Persons-BIWEEKLY Payroll Period (For Wages Paid through December 31,2017)
And the wages are		And the number of withholding allowances claimed is-
At least	But less than		0	1	2	3	4	5	6	7	8	9	10
			The amount of income tax to be withheld is-
$800	$820		$90	$67	$44	$25	$10	$0	$0	$0	$0	$0	$0
820	840		93	70	47	27	12	0	0	0	0	0	0
840	860		96	73	50	29	14	0	0	0	0	0	0
860	880		99	76	53	31	16	0	0	0	0	0	0
880	900		102	79	56	33	18	2	0	0	0	0	0
900	920		105	82	59	35	20	4	0	0	0	0	0
920	940		108	85	62	38	22	6	0	0	0	0	0
940	960		111	88	65	41	24	8	0	0	0	0	0
960	980		114	91	68	44	26	10	0	0	0	0	0
980	1,000		117	94	71	47	28	12	0	0	0	0	0
1,000	1,020		120	97	74	50	30	14	0	0	0	0	0
1,020	1,040		123	100	77	53	32	16	1	0	0	0	0
1,040	1,060		126	103	80	56	34	18	3	0	0	0	0
1,060	1,080		129	106	83	59	36	20	5	0	0	0	0
1,080	1,100		132	109	86	62	39	22	7	0	0	0	0
1,100	1,120		135	112	89	65	42	24	9	0	0	0	0
1,120	1,140		138	115	92	68	45	26	11	0	0	0	0
1,140	1,160		141	118	95	71	48	28	13	0	0	0	0
1,160	1,180		144	121	98	74	51	30	15	0	0	0	0
1,180	1,200		147	124	101	77	54	32	17	1	0	0	0
1,200	1,220		150	127	104	80	57	34	19	3	0	0	0
1,220	1,240		153	130	107	83	60	36	21	5	0	0	0
1,240	1,260		156	133	110	86	63	39	23	7	0	0	0
1,260	1,280		159	136	113	89	66	42	25	9	0	0	0
1,280	1,300		162	139	116	92	69	45	27	11	0	0	0
1,300	1,320		165	142	119	95	72	48	29	13	0	0	0
1,320	1,340		168	145	122	98	75	51	31	15	0	0	0
1,340	1,360		171	148	125	101	78	54	33	17	2	0	0
1,360	1,380		174	151	128	104	81	57	35	19	4	0	0
1,380	1,400		177	154	131	107	84	60	37	21	6	0	0
1,400	1,420		180	157	134	110	87	63	40	23	8	0	0
1,420	1,440		183	160	137	113	90	66	43	25	10	0	0
1,440	1,460		186	163	140	116	93	69	46	27	12	0	0
1,460	1,480		189	166	143	119	96	72	49	29	14	0	0
1,480	1,500		192	169	146	122	99	75	52	31	16	0	0
1,500	1,520		195	172	149	125	102	78	55	33	18	2	0
1,520	1,540		198	175	152	128	105	81	58	35	20	4	0
1,540	1,560		201	178	155	131	108	84	61	38	22	6	0
1,560	1,580		206	181	158	134	111	87	64	41	24	8	0
1,580	1,600		211	184	161	137	114	90	67	44	26	10	0
1,600	1,620		216	187	164	140	117	93	70	47	28	12	0
1,620	1,640		221	190	167	143	120	96	73	50	30	14	0
1,640	1,660		226	193	170	146	123	99	76	53	32	16	0
1,660	1,680		231	196	173	149	126	102	79	56	34	18	2
1,680	1,700		236	199	176	152	129	105	82	59	36	20	4
1,700	1,720		241	203	179	155	132	108	85	62	38	22	6
1,720	1,740		246	208	182	158	135	111	88	65	41	24	8
1,740	1,760		251	213	185	161	138	114	91	68	44	26	10
1,760	1,780		256	218	188	164	141	117	94	71	47	28	12
1,780	1,800		261	223	191	167	144	120	97	74	50	30	14
1,800	1,820		266	228	194	170	147	123	100	77	53	32	16
1,820	1,840		271	233	197	173	150	126	103	80	56	34	18
1,840	1,860		276	238	200	176	153	129	106	83	59	36	20
1,860	1,880		281	243	204	179	156	132	109	86	62	39	22
1,880	1,900		286	248	209	182	159	135	112	89	65	42	24
1,900	1,920		291	253	214	185	162	138	115	92	68	45	26
1,920	1,940		296	258	219	188	165	141	118	95	71	48	28
1,940	1,960		301	263	224	191	168	144	121	98	74	51	30
1,960	1,980		306	268	229	194	171	147	124	101	77	54	32
1,980	2,000		311	273	234	197	174	150	127	104	80	57	34
2,000	2,020		316	278	239	200	177	153	130	107	83	60	37
2,020	2,040		321	283	244	205	180	156	133	110	86	63	40
2,040	2,060		326	288	249	210	183	159	136	113	89	66	43
2,060	2,080		331	293	254	215	186	162	139	116	92	69	46
2,080	2,100		336	298	259	220	189	165	142	119	95	72	49

A) $124.25

B) $113.80

C) $115.95

D) $110.78

44) Brent is a full-time exempt employee in Clark County, Indiana. He earns an annual salary of $45,000 and is paid semimonthly. He is married with 3 withholding allowances. His state income tax per pay period is $57.38, and Clark County income tax is $33.75 per pay period. What is the total of FICA, Federal, state, and local deductions per pay period, assuming no Pre-Tax Deductions?(Use the wage-bracket table to determine Federal taxes. Do not round intermediate calculations, only round final answer to two decimal points.)

Wage Bracket Method Tables for Income Tax Withholding MARRIED Persons-SEMIMONTHLY Payroll Period (For Wages Paid through December 31,2017)
And the wages are		And the number of withholding allowances claimed is-
At least	But less than	0	1	2	3	4	5	6	7	8	9	10
		The amount of income tax to be withheld is-
$1,600	$1,620	$149	$123	$98	$74	$57	$41	$24	$7	$0	$0	$0
1,620	1,640	152	126	101	76	59	43	26	9	0	0	0
1,640	1,660	155	129	104	79	61	45	28	11	0	0	0
1,660	1,680	158	132	107	82	63	47	30	13	0	0	0
1,680	1,700	161	135	110	85	65	49	32	15	0	0	0
1,700	1,720	164	138	113	88	67	51	34	17	0	0	0
1,720	1,740	167	141	116	91	69	53	36	19	2	0	0
1,740	1,760	170	144	119	94	71	55	38	21	4	0	0
1,760	1,780	173	147	122	97	73	57	40	23	6	0	0
1,780	1,800	176	150	125	100	75	59	42	25	8	0	0
1,800	1,820	179	153	128	103	77	61	44	27	10	0	0
1,820	1,840	182	156	131	106	80	63	46	29	12	0	0
1,840	1,860	185	159	134	109	83	65	48	31	14	0	0
1,860	1,880	188	162	137	112	86	67	50	33	16	0	0
1,880	1,900	191	165	140	115	89	69	52	35	18	1	0
1,900	1,920	194	168	143	118	92	71	54	37	20	3	0
1,920	1,940	197	171	146	121	95	73	56	39	22	5	0
1,940	1,960	200	174	149	124	98	75	58	41	24	7	0
1,960	1,980	203	177	152	127	101	77	60	43	26	9	0
1,980	2,000	206	180	155	130	104	79	62	45	28	11	0
2,000	2,020	209	183	158	133	107	82	64	47	30	13	0
2,020	2,040	212	186	161	136	110	85	66	49	32	15	0
2,040	2,060	215	189	164	139	113	88	68	51	34	17	0
2,060	2,080	218	192	167	142	116	91	70	53	36	19	2
2,080	2,100	221	195	170	145	119	94	72	55	38	21	4
2,100	2,120	224	198	173	148	122	97	74	57	40	23	6
2,120	2,140	227	201	176	151	125	100	76	59	42	25	8
2,140	2,160	230	204	179	154	128	103	78	61	44	27	10
2,160	2,180	233	207	182	157	131	106	81	63	46	29	12
2,180	2,200	236	210	185	160	134	109	84	65	48	31	14
2,200	2,220	239	213	188	163	137	112	87	67	50	33	16
2,220	2,240	242	216	191	166	140	115	90	69	52	35	18
2,240	2,260	245	219	194	169	143	118	93	71	54	37	20
2,260	2,280	248	222	197	172	146	121	96	73	56	39	22
2,280	2,300	251	225	200	175	149	124	99	75	58	41	24
2,300	2,320	254	228	203	178	152	127	102	77	60	43	26
2,320	2,340	257	231	206	181	155	130	105	79	62	45	28
2,340	2,360	260	234	209	184	158	133	108	82	64	47	30
2,360	2,380	263	237	212	187	161	136	111	85	66	49	32
2,380	2,400	266	240	215	190	164	139	114	88	68	51	34
2,400	2,420	269	243	218	193	167	142	117	91	70	53	36
2,420	2,440	272	246	221	196	170	145	120	94	72	55	38
2,440	2,460	275	249	224	199	173	148	123	97	74	57	40
2,460	2,480	278	252	227	202	176	151	126	100	76	59	42
2,480	2,500	281	255	230	205	179	154	129	103	78	61	44
2,500	2,520	284	258	233	208	182	157	132	106	81	63	46
2,520	2,540	287	261	236	211	185	160	135	109	84	65	48
2,540	2,560	290	264	239	214	188	163	138	112	87	67	50
2,560	2,580	293	267	242	217	191	166	141	115	90	69	52
2,580	2,600	296	270	245	220	194	169	144	118	93	71	54
2,600	2,620	299	273	248	223	197	172	147	121	96	73	56
2,620	2,640	302	276	251	226	200	175	150	124	99	75	58
2,640	2,660	305	279	254	229	203	178	153	127	102	77	60
2,660	2,680	308	282	257	232	206	181	156	130	105	80	62
2,680	2,700	311	285	260	235	209	184	159	133	108	83	64
2,700	2,720	314	288	263	238	212	187	162	136	111	86	66
2,720	2,740	317	291	266	241	215	190	165	139	114	89	68
2,740	2,760	320	294	269	244	218	193	168	142	117	92	70
2,760	2,780	323	297	272	247	221	196	171	145	120	95	72
2,780	2,800	326	300	275	250	224	199	174	148	123	98	74
2,800	2,820	329	303	278	253	227	202	177	151	126	101	76
2,820	2,840	332	306	281	256	230	205	180	154	129	104	78
2,840	2,860	335	309	284	259	233	208	183	157	132	107	81
2,860	2,880	338	312	287	262	236	211	186	160	135	110	84
2,880	2,900	341	315	290	265	239	214	189	163	138	113	87
2,900	2,920	344	318	293	268	242	217	192	166	141	116	90
2,920	2,940	347	321	296	271	245	220	195	169	144	119	93

A) $369.36

B) $306.13

C) $325.13

D) $346.57

45) Vivienne is a full-time exempt employee in DeKalb County, Indiana, and is paid biweekly. She earns $39,000 annually, and is married with 2 withholding allowances. Her state income tax deduction is $44.46, and the DeKalb County income tax deduction is $19.62. What is the total amount of her FICA, federal, state, and local taxes per pay period, assuming no Pre-Tax Deductions? (Use the wage-bracket table to determine the federal tax deduction. Do not round intermediate calculations, only round final answer to two decimal points.)

Wage Bracket Method Tables for Income Tax Withholding MARRIED Persons-BIWEEKLY Payroll Period (For Wages Paid through December 31, 2017)
And the wages are		And the number of withholding allowances claimed is-
At least	But less than	0	1	2	3	4	5	6	7	8	9	10
		The amount of income tax to be withheld is-
$1,500	$1,520	$141	$117	$94	$71	$55	$40	$24	$9	$0	$0	$0
1,520	1,540	144	120	97	74	57	42	26	11	0	0	0
1,540	1,560	147	123	100	77	59	44	28	13	0	0	0
1,560	1,580	150	126	103	80	61	46	30	15	0	0	0
1,580	1,600	153	129	106	83	63	48	32	17	1	0	0
1,600	1,620	156	132	109	86	65	50	34	19	3	0	0
1,620	1,640	159	135	112	89	67	52	36	21	5	0	0
1,640	1,660	162	138	115	92	69	54	38	23	7	0	0
1,660	1,680	165	141	118	95	71	56	40	25	9	0	0
1,680	1,700	168	144	121	98	74	58	42	27	11	0	0
1,700	1,720	171	147	124	101	77	60	44	29	13	0	0
1,720	1,740	174	150	127	104	80	62	46	31	15	0	0
1,740	1,760	177	153	130	107	83	64	48	33	17	2	0
1,760	1,780	180	156	133	110	86	66	50	35	19	4	0
1,780	1,800	183	159	136	113	89	68	52	37	21	6	0
1,800	1,820	186	162	139	116	92	70	54	39	23	8	0
1,820	1,840	189	165	142	119	95	72	56	41	25	10	0
1,840	1,860	192	168	145	122	98	75	58	43	27	12	0
1,860	1,880	195	171	148	125	101	78	60	45	29	14	0
1,880	1,900	198	174	151	128	104	81	62	47	31	16	0
1,900	1,920	201	177	154	131	107	84	64	49	33	18	2
1,920	1,940	204	180	157	134	110	87	66	51	35	20	4
1,940	1,960	207	183	160	137	113	90	68	53	37	22	6
1,960	1,980	210	186	163	140	116	93	70	55	39	24	8
1,980	2,000	213	189	166	143	119	96	73	57	41	26	10
2,000	2,020	216	192	169	146	122	99	76	59	43	28	12
2,020	2,040	219	195	172	149	125	102	79	61	45	30	14
2,040	2,060	222	198	175	152	128	105	82	63	47	32	16
2,060	2,080	225	201	178	155	131	108	85	65	49	34	18
2,080	2,100	228	204	181	158	134	111	88	67	51	36	20
2,100	2,120	231	207	184	161	137	114	91	69	53	38	22
2,120	2,140	234	210	187	164	140	117	94	71	55	40	24
2,140	2,160	237	213	190	167	143	120	97	73	57	42	26
2,160	2,180	240	216	193	170	146	123	100	76	59	44	28
2,180	2,200	243	219	196	173	149	126	103	79	61	46	30
2,200	2,220	246	222	199	176	152	129	106	82	63	48	32
2,220	2,240	249	225	202	179	155	132	109	85	65	50	34
2,240	2,260	252	228	205	182	158	135	112	88	67	52	36
2,260	2,280	255	231	208	185	161	138	115	91	69	54	38
2,280	2,300	258	234	211	188	164	141	118	94	71	56	40
2,300	2,320	261	237	214	191	167	144	121	97	74	58	42
2,320	2,340	264	240	217	194	170	147	124	100	77	60	44
2,340	2,360	267	243	220	197	173	150	127	103	80	62	46
2,360	2,380	270	246	223	200	176	153	130	106	83	64	48
2,380	2,400	273	249	226	203	179	156	133	109	86	66	50
2,400	2,420	276	252	229	206	182	159	136	112	89	68	52
2,420	2,440	279	255	232	209	185	162	139	115	92	70	54
2,440	2,460	282	258	235	212	188	165	142	118	95	72	56
2,460	2,480	285	261	238	215	191	168	145	121	98	74	58
2,480	2,500	288	264	241	218	194	171	148	124	101	77	60
2,500	2,520	291	267	244	221	197	174	151	127	104	80	62
2,520	2,540	294	270	247	224	200	177	154	130	107	83	64
2,540	2,560	297	273	250	227	203	180	157	133	110	86	66
2,560	2,580	300	276	253	230	206	183	160	136	113	89	68
2,580	2,600	303	279	256	233	209	186	163	139	116	92	70
2,600	2,620	306	282	259	236	212	189	166	142	119	95	72
2,620	2,640	309	285	262	239	215	192	169	145	122	98	75
2,640	2,660	312	288	265	242	218	195	172	148	125	101	78
2,660	2,680	315	291	268	245	221	198	175	151	128	104	81
2,680	2,700	318	294	271	248	224	201	178	154	131	107	84
2,700	2,720	321	297	274	251	227	204	181	157	134	110	87
2,720	2,740	324	300	277	254	230	207	184	160	137	113	90
2,740	2,760	327	303	280	257	233	210	187	163	140	116	93
2,760	2,780	330	306	283	260	236	213	190	166	143	119	96
2,780	2,800	333	309	286	263	239	216	193	169	146	122	99
2,800	2,820	336	312	289	266	242	219	196	172	149	125	102
2,820	2,840	339	315	292	269	245	222	199	175	152	128	105
2,840	2,860	342	318	295	272	248	225	202	178	155	131	108
2,860	2,880	345	321	298	275	251	228	205	181	158	134	111

A) $239.83

B) $320.83

C) $265.83

D) $272.83

46) Danny is a full-time exempt employee in Alabama, where the state income tax rate is 5%. He earns $78,650 annually and is paid semimonthly. He is married with four withholding allowances. His is health insurance is $100.00 per pay period and is deducted on a pre-tax basis. Danny contributes 5% of his pay to his 401(k). Assuming that he has no other deductions, what is Danny's net pay for the period? (Use the percentage method for the federal income tax and the wage-bracket table for the state income tax. Do not round interim calculations, only round final answer to two decimal points.)

Table 5. Percentage Method-2017 Amount for one Withholding Allowance

Payroll Period	One Withholding Allowance
Weekly	$77.90
Biweekly	155.80
Semimonthly	168.80
Monthly	337.50
Quarterly	1,012.50
Semiannually	2,025.00
Annually	4,050.00
Daily or miscellaneous (each day of the payroll period)	15.60

TABLE 3-SEMIMONTHLY Payroll Period
(a) SINGLE person (including head of household)—					(b) MARRIED person-
If the amount of wages (after subtracting withholding allowances) is:		The amount of income tax to withhold is:			If the amount of wages (after subtracting withholding allowances) is:				The amount of income tax to withhold is:
Not over $96.......		$0		Not over $360......				$0
Over—	But not over—	Of excess over—			Over—		But not over—		of excess over—
$96	−$484	$0.00 plus 10%	−$96	$360		−$1,138		$0.00 plus 10%		−$360
$484	−$1,677	$38.80 plus 15%	−$484	$1,138		−$3,523		$77.80 plus 15%		−$1,138
$1,677	−$3,925	$217.75 plus 25%	−$1,677	$3,523		−$6,740		$435.55 plus 25%		−$3,523
$3,925	−$8,081	$779.75 plus 28%	−$3,925	$6,740		−$10,083		$1,239.80 plus 28%		−$6,740
$8,081	−$17,458	$1,943.43 plus 33%	−$8,081	$10,083		−$17,723		$2,175.84 plus 33%		−$10,083
$17,458	−$17,529	$5,037.84 plus 35%	−$17,458	$17,723		−$19,973		$4,697.04 plus 35%		−$17,723
$17,529		$5,062.69 plus 39.6%	−$17,529	$19,973				$5,484.54 plus 39.6%		−$19,973

A) $2,245.53

B) $2,403.95

C) $2,361.72

D) $2,178.90

47) Amanda is a full-time exempt employee in Sparks, Nevada, who earns $84,000 annually. She is married with 1 deduction and is paid biweekly. She contributes $150.00 per pay period to her 401(k) and has pre-tax health insurance and AFLAC deductions of $50.00 and $75.00, respectively. Amanda contributes $25.00 per pay period to the United Way. What is her net pay? (Use the percentage method. Do not round intermediate calculations. Round final answers to 2 decimal places.)

Table 5. Percentage Method-2017 Amount for one Withholding Allowance

Payroll Period	One Withholding Allowance
Weekly	$77.90
Biweekly	155.80
Semimonthly	168.80
Monthly	337.50
Quarterly	1,012.50
Semiannually	2,025.00
Annually	4,050.00
Daily or miscellaneous (each day of the payroll period)	15.60

TABLE 2-BIWEEKLY Payroll Period

(a) SINGLE person (including head of household)−

(b) MARRIED person−

If the amount of wages

(after subtracting withholding allowances) is:

The amount of income tax to withhold is:

If the amount of wages

(after subtracting withholding allowances) is:

The amount of income tax to withhold is:

Not over $88…..

Not over $329…

Over−

But not over−

of excess over−

Over−

But not over−

of excess over−

$88

−$447

$0.00 plus 10%

−$88

$333

−$1,050

$0.00 plus 10%

−$333

$447

−$1,548

$35.90 plus 15%

−$447

$1,050

−$3,252

$71.70 plus 15%

−$1,050

$1,548

−$3,623

$201.05 plus 25%

−$1,548

$3,252

−$6,221

$402.00 plus 25%

−$3,252

$3,623

−$7,460

$719.80 plus 28%

−$3,623

$6,221

−$9,308

$1,144.25 plus 28%

−$6,221

$7,460

−$16,115

$1,794.16 plus 33%

−$7,460

$9,308

−$16,360

$2,008.61 plus 33%

−$9,308

$16,115

−$16,181

$4,650.31 plus 35%

−$16,115

$16,360

−$18,437

$4,335.77 plus 35%

−$16,360

$16,181

$4,673.41 plus 39.6%

−$16,181

$18,437

$5,062.72 plus 39.6%

−$18,437

A) $2,394.47

B) $2,193.60

C) $2,358.98

D) $2,605.44

48) Collin is a full-time exempt employee in Juneau, Alaska, who earns $135,000 annually and has not yet reached the Social Security wage base. He is single with 1 withholding allowance and is paid semimonthly. He contributes 3% per pay period to his 401(k) and has pre-tax health insurance and AFLAC deductions of $150 and $25, respectively. Collin has a child support garnishment of $300 per pay period. What is his net pay? (Use the percentage method. Do not round interim calculations, only round final answer to two decimal points.)

Table 5. Percentage Method—2017 Amount for One Withholding Allowance

Federal Income tax using percentage method

Payroll Period	One Withholding Allowance
Weekly	$77.90
Biweekly	155.80
Semimonthly	168.80
Monthly	337.50
Quarterly	1,012.50
Semiannually	2,025.00
Annually	4,050.00
Daily or miscellaneous (each day of the payroll period)	15.60

TABLE 3-SEMIMONTHLY Payroll Period
(a) SINGLE person (including head of household)—					(b) MARRIED person-
If the amount of wages (after subtracting withholding allowances) is:		The amount of income tax to withhold is:			If the amount of wages (after subtracting withholding allowances) is:			The amount of income tax to withhold is:
Not over $96.......		$0		Not over $360......				$0
Over—	But not over—	Of excess over—			Over—		But not over—	of excess over—
$96	−$484	$0.00 plus 10%	−$96	$360		−$1,138		$0.00 plus 10%	−$360
$484	−$1,677	$38.80 plus 15%	−$484	$1,138		−$3,523		$77.80 plus 15%	−$1,129
$1,677	−$3,925	$217.75 plus 25%	−$1,677	$3,523		−$6,740		$435.55 plus 25%	−$1,138
$3,925	−$8,081	$779.75 plus 28%	−$3,925	$6,740		−$10,083		$1,239.80 plus 28%	−$3,523
$8,081	−$17,458	$1,943.43 plus 33%	−$8,081	$10,083		−$17,723		$2,175.84 plus 33%	−$10,083
$17,458	−$17,529	$5,037.84 plus 35%	−$17,458	$17,723		−$19,973		$4,697.04 plus 35%	−$17,723
$17,529		$5,062.69 plus 39.6%	−$17,529	$19,973				$5,484.54 plus 39.6%	−$19,973

A) $3,353.05

B) $3,452.08

C) $3,274.60

D) $3,585.14

49) Which of the following is the correct sequence for computing net pay?

A) Compute gross pay then deduct withholding and add FICA taxes to obtain net pay.

B) Compute gross pay, compute FICA, deduct pre-tax amounts, and deduct taxes.

C) Compute gross pay, deduct taxes, and add voluntary deductions.

D) Compute gross pay, deduct pre-tax amounts, compute FICA, deduct taxes, and deduct post-tax amounts.

50) Maile is a full-time exempt employee in Boca Raton, Florida, who earns $1,370.15 per biweekly payday. She is married with seven withholding allowances, so her federal income tax is $0. She contributes 4% of her gross pay to her 401(k) and has her health insurance premium of $50 deducted on a pre-tax basis. She has $10 deducted per pay period for a Salvation Army contribution and has union dues of $40 per pay period. What is her net pay? (Do not round interim calculations, only round final answer to two decimal points.)

A) $1,160.53

B) $1,114.35

C) $1,124.23

D) $1,137.93

51) Jesse is a part-time nonexempt employee in Austin, Texas, who earns $12.50 per hour. During the last biweekly pay period he worked 35 hours. He is married with zero withholding allowances, which means his federal income tax deduction is $10.00, and has additional federal tax withholding of $30 per pay period. What is his net pay? (Do not round interim calculations, only round final answer to two decimal points.)

A) $354.28

B) $374.03

C) $364.03

D) $378.03

52) Janna is a salaried nonexempt employee in Laramie, Wyoming, who earns $30,000 per year for a standard 40-hour workweek and is paid biweekly. She is single with one withholding allowance. During the last pay period, she worked 5 hours of overtime. She contributes 3% of her gross pay to her 401(k) on a pre-tax basis and has a garnishment of 10% of her disposable income for a consumer credit garnishment. What is her net pay? (Use the wage-bracket method. Do not round interim calculations, only round final answer to two decimal points.)

Wage Bracket Method Tables for Income Tax Withholding SINGLE Persons-BIWEEKLY Payroll Period (For Wages Paid through December 31,2017)
And the wages are		And the number of withholding allowances claimed is-
At least	But less than		0	1	2	3	4	5	6	7	8	9	10
			The amount of income tax to be withheld is-
$800	$820		$90	$67	$44	$25	$10	$0	$0	$0	$0	$0	$0
820	840		93	70	47	27	12	0	0	0	0	0	0
840	860		96	73	50	29	14	0	0	0	0	0	0
860	880		99	76	53	31	16	0	0	0	0	0	0
880	900		102	79	56	33	18	2	0	0	0	0	0
900	920		105	82	59	35	20	4	0	0	0	0	0
920	940		108	85	62	38	22	6	0	0	0	0	0
940	960		111	88	65	41	24	8	0	0	0	0	0
960	980		114	91	68	44	26	10	0	0	0	0	0
980	1,000		117	94	71	47	28	12	0	0	0	0	0
1,000	1,020		120	97	74	50	30	14	0	0	0	0	0
1,020	1,040		123	100	77	53	32	16	1	0	0	0	0
1,040	1,060		126	103	80	56	34	18	3	0	0	0	0
1,060	1,080		129	106	83	59	36	20	5	0	0	0	0
1,080	1,100		132	109	86	62	39	22	7	0	0	0	0
1,100	1,120		135	112	89	65	42	24	9	0	0	0	0
1,120	1,140		138	115	92	68	45	26	11	0	0	0	0
1,140	1,160		141	118	95	71	48	28	13	0	0	0	0
1,160	1,180		144	121	98	74	51	30	15	0	0	0	0
1,180	1,200		147	124	101	77	54	32	17	1	0	0	0
1,200	1,220		150	127	104	80	57	34	19	3	0	0	0
1,220	1,240		153	130	107	83	60	36	21	5	0	0	0
1,240	1,260		156	133	110	86	63	39	23	7	0	0	0
1,260	1,280		159	136	113	89	66	42	25	9	0	0	0
1,280	1,300		162	139	116	92	69	45	27	11	0	0	0
1,300	1,320		165	142	119	95	72	48	29	13	0	0	0
1,320	1,340		168	145	122	98	75	51	31	15	0	0	0
1,340	1,360		171	148	125	101	78	54	33	17	2	0	0
1,360	1,380		174	151	128	104	81	57	35	19	4	0	0
1,380	1,400		177	154	131	107	84	60	37	21	6	0	0
1,400	1,420		180	157	134	110	87	63	40	23	8	0	0
1,420	1,440		183	160	137	113	90	66	43	25	10	0	0
1,440	1,460		186	163	140	116	93	69	46	27	12	0	0
1,460	1,480		189	166	143	119	96	72	49	29	14	0	0
1,480	1,500		192	169	146	122	99	75	52	31	16	0	0
1,500	1,520		195	172	149	125	102	78	55	33	18	2	0
1,520	1,540		198	175	152	128	105	81	58	35	20	4	0
1,540	1,560		201	178	155	131	108	84	61	38	22	6	0
1,560	1,580		206	181	158	134	111	87	64	41	24	8	0
1,580	1,600		211	184	161	137	114	90	67	44	26	10	0
1,600	1,620		216	187	164	140	117	93	70	47	28	12	0
1,620	1,640		221	190	167	143	120	96	73	50	30	14	0
1,640	1,660		226	193	170	146	123	99	76	53	32	16	0
1,660	1,680		231	196	173	149	126	102	79	56	34	18	2
1,680	1,700		236	199	176	152	129	105	82	59	36	20	4
1,700	1,720		241	203	179	155	132	108	85	62	38	22	6
1,720	1,740		246	208	182	158	135	111	88	65	41	24	8
1,740	1,760		251	213	185	161	138	114	91	68	44	26	10
1,760	1,780		256	218	188	164	141	117	94	71	47	28	12
1,780	1,800		261	223	191	167	144	120	97	74	50	30	14
1,800	1,820		266	228	194	170	147	123	100	77	53	32	16
1,820	1,840		271	233	197	173	150	126	103	80	56	34	18
1,840	1,860		276	238	200	176	153	129	106	83	59	36	20
1,860	1,880		281	243	204	179	156	132	109	86	62	39	22
1,880	1,900		286	248	209	182	159	135	112	89	65	42	24
1,900	1,920		291	253	214	185	162	138	115	92	68	45	26
1,920	1,940		296	258	219	188	165	141	118	95	71	48	28
1,940	1,960		301	263	224	191	168	144	121	98	74	51	30
1,960	1,980		306	268	229	194	171	147	124	101	77	54	32
1,980	2,000		311	273	234	197	174	150	127	104	80	57	34
2,000	2,020		316	278	239	200	177	153	130	107	83	60	37
2,020	2,040		321	283	244	205	180	156	133	110	86	63	40
2,040	2,060		326	288	249	210	183	159	136	113	89	66	43
2,060	2,080		331	293	254	215	186	162	139	116	92	69	46
2,080	2,100		336	298	259	220	189	165	142	119	95	72	49

A) $998.90

B) $913.90

C) $894.07

D) $886.96

53) Which of the following is true about cash as a method of paying employees?

A) Cash is the most secure payment method.

B) Cash is the most widely used payment method.

C) Cash is readily transferable and highly liquid.

D) Cash is the most convenient pay method for employers.

54) Why do employers use checks as an employment payment method?

A) Paying employees by check allows the employer flexibility with its bank accounts.

B) Paying employees by check increases the complexity of the payroll process.

C) Paying employees by check requires the employer to keep currency on the premises.

D) Paying employees by check offers a level of security of employee payments.

55) Best practices for paying employees by check include which of the following? (Select all that apply.)

A) Maintenance of a separate checking account for payroll purposes.

B) Keeping a single check register for the firm's checking accounts.

C) Logging the number, amount, and purpose of each check used.

D) Establishing an unclaimed property account for uncashed checks.

56) What is an advantage of direct deposit from the employee's perspective?

A) Long processing times for pay disbursements.

B) Secure access to compensation.

C) The requirement to have a bank account.

D) Access to payroll data on non-secured website.

57) From the employer's perspective, which of the following is a challenge of paying employees by direct deposit?

A) Reduction in payroll processing costs.

B) Secure processing of employee compensation.

C) Vulnerability of data to computer attacks.

D) Employee self-maintenance of personnel records.

58) Which body issued Regulation E to protect consumers from loss of deposited funds?

A) Department of Homeland Security

B) Internal Revenue Service

C) American Banking Association

D) Federal Deposit Insurance Corporation

59) What is a disadvantage to using paycards as a method of transmitting employee compensation?

A) Convenience of retrieving pay disbursements.

B) Potential withdrawal and point-of-sale limitations.

C) Ease of paying traveling employees.

D) Acceptance of paycards at many locations.

60) Which of the following payment methods is growing in popularity among employees?

A) Cash

B) Check

C) Direct Deposit

D) Paycard

61) The annual payroll tax guide that the IRS distributes is called ________.

A) The IRS tax guide

B) Publication E

C) Circular 15

D) Publication 15

62) When a payroll check is subject to escheatment, who handles the distribution of the money?

A) The employee.

B) The company.

C) The IRS.

D) It depends on state laws.

63) Nickels Company is located in West Virginia has employees who live in Ohio, Florida, Tennessee, and West Virginia. For which state(s) should the company collect and remit state income tax? (Select all that apply.)

A) West Virginia

B) Tennessee

C) Florida

D) Ohio

64) The factors that determine an employee's federal income tax are ________.

A) Marital status, birth date, taxable pay, and pay frequency

B) Number of children, pay frequency, marital status, and gross pay

C) Marital status, number of withholdings, taxable pay, and pay frequency

D) Pay frequency, number of dependents, taxable pay, and marital status

65) The percentage method of determining an employee's Federal income tax deductions ________.

A) is used to promote complexity in payroll practices

B) allows payroll accountants to determine Federal income tax for the firm itself

C) is used primarily for high wage earners and computerized payroll programs

D) is less accurate than the results gained from using the wage-bracket method

66) The purpose of the wage base used for the Social Security tax is ________.

A) to determine when to start withholding the tax from an employee's pay

B) to establish a maximum salary level for application of the tax to employee pay

C) to determine the amount of Social Security tax to withhold from an employee's pay

D) to compute the total amount of Social Security tax that a firm must pay

67) The percentage of the Medicare tax withholding ________.

A) is the same for every employee, regardless of income

B) is subject to change based on the firm's profitability

C) changes every year in response to industry needs

D) remains the same for all employees who earn less than $200,000

68) State and Local Income Tax rates ________.

A) exist at the same level in every state

B) differ among states and localities

C) are mandated by Federal law

D) are paid by the employer to the Federal government

69) Post-Tax Deductions are amounts ________.

A) That are voluntarily chosen by the employee

B) That the employer chooses to withhold after assessing the employee's tax liability

C) That Include both mandatory and voluntary deductions

D) That are only mandatory deductions like garnishments and union dues

70) The purpose of paycards as a pay method is to ________.

A) prevent employees from opening bank accounts

B) promote accessibility and portability of employee compensation

C) protect payroll processes against embezzlement

D) promote debit card use as a means of economic stimulus

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Chapter 5 Employee Net Pay and Pay Methods

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