1. Martin is married and claims four exemptions on his W- 4. What is his federal income tax withholding under the following conditions? Use the percentage method table in the Appendix to this chapter.
a. Martin is paid semimonthly, and his gross pay is $ 3,500 per paycheck.
b. Martin is paid monthly, and his gross pay is $ 6,400 per paycheck.
c. Martin is paid weekly, and his gross pay is $ 4,750 per paycheck.
2. Baker Company is trying to determine how often it needs to deposit payroll taxes for calendar year 2013. The company made the following quarterly payroll tax deposits during the last two years:
Quarter beginning January 1, 2011 $ 10,000
Quarter beginning April 1, 2011 10,000
Quarter beginning July 1, 2011 11,000
Quarter beginning October 1, 2011 12,000
Quarter beginning January 1, 2012 12,000
Quarter beginning April 1, 2012 12,000
Quarter beginning July 1, 2012 11,000
Quarter beginning October 1, 2012 12,000
a. What is the amount from the lookback period?
b. In 2013 how often must Baker Company make payroll deposits?
3. Jacob Turner hired Jen Hatcher as a housekeeper starting on January 2 at $ 550 monthly. Jacob does not withhold any federal taxes. Assume that Jen is not a housekeeper for anyone else. Assume that Jacob paid $ 1,650 in wages for the 4th quarter of 2013.
a. How much in social security tax should Jacob pay? ___________________________
b. How much Medicare tax should Jacob pay?
c. How much FUTA tax should Jacob pay
4. Lauprechta Inc. Company has the following employees on payroll:
Semimonthly Payroll Withholding Allowances Marital Status
Naila $ 4,800 3 Married
Wilfred $7,250 4 Married
Stephanie $ 2,800 1 Single
Tanya $ 3,600 2 Single
Complete the table for taxes to be withheld for each pay period.
Employee Federal withholding tax Social security tax Medicare tax Total taxes withheld