Calculate federal income tax withholding

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For each employee listed, use the percentage method to calculate federal income tax withholding, assuming that each has submitted a pre-2020 Form W-4. Then calculate both the state income tax withholding (assuming a state tax rate of 5.0% of taxable pay, with taxable pay being the same for federal and state income tax withholding), and the local income tax withholding. Refer to Publication 15-T.

Giuseppe Fortuna (single; 2 federal withholding allowances) earned weekly gross pay of $3,820. He participates in a cafeteria plan, to which he pays $175 during the period. The city in which he works levies a tax of $13/week on employees who work within city limits.

Federal income tax withholding = $

State income tax withholding = $

Local income tax withholding = $

Reference no: EM133258422

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