Refer to the partially completed payroll register which you
worked on at the end of Chapter 3. You will now determine the
amount of income tax to withhold for each employee, proceeding as
follows: 1. In the appropriate columns of your payroll register,
record the marital status and number of withholding allowances
claimed for each employee, using the information provided. 2.
Record the payroll deductions for the SIMPLE plan that the employer
has established for participating employees. All of the employees
are participating, and their weekly contributions are listed below.
The tax deferral on these deductions applies only to the federal
income tax. 3. Record the amount of federal income taxes using the
wage-bracket method. 4. Record the state income taxes on the gross
weekly earnings for each employee. The rate is 3.07% for the state
of Pennsylvania. 5. Record the city income taxes on the gross
weekly earnings of each employee. The rate is 3% for the city of
Pittsburgh residents. Time Card No. Marital Status No. of
Allowances SIMPLE Deductions 11 S 1 $20 12 S 0 50 13 M 2 40 21 M 4
50 22 S 2 20 31 M 3 40 32 M 6 50 33 S 1 60 51 M 5 30 99 M 7 80