PAYROLL ACCOUNTING - CHAPTERS 5-7
EXAM QUESTIONS AND ANSWERS 100%
CORRECT!!
,Milligan's Millworks pays its employees on a weekly basis. Using the Wage Bracket
Method Tables for Income Tax Withholding in Appendix C, compute the federal income
tax withholdings for the following employees of Milligan's Millworks. (Assume that no
pre-tax deductions exist for any employee.) - ANSWER Employee: D. Balestreri
Marital Status: S
No. of Exemptions: 10
Weekly Pay: $1,010
Federal Tax: $20
Employee: Y. Milligan
Marital Status: S
No. of Exemptions: 7
Weekly Pay: $1,163
Federal Tax: $77
Employee: H. Curran
Marital Status: M
No. of Exemptions: 2
Weekly Pay: $850
Federal Tax: $62
Employee: D. Liberti
Marital Status: M
No. of Exemptions: 6
Weekly Pay: $1,095
Federal Tax: $51
Using the percentage method in Appendix C, calculate the federal withholding amounts
for the following employees. (Round your intermediate calculations and final answers to
2 decimal places.) - ANSWER Employee: S. Calder
Marital Status: M
Withholdings: 4
Pay Frequency: Quarterly
Amount per Pay Period: $22,750
Federal Income Tax: $2,247.45
Employee: P. Singh
Marital Status: S
, Withholdings: 7
Pay Frequency: Annually
Amount per Pay Period: $215,000
Federal Income Tax: $44,599.75
Employee: B. Nelson
Marital Status: M
Withholdings: 5
Pay Frequency: Daily
Amount per Pay Period: $885
Federal Income Tax: $166.20
Jane Heinlein is the payroll accountant for Sia Lights of Carter, Nebraska. The
employees of Sia Lights are paid biweekly. An employee, Melinda Gunnarson, comes to
her on September 14 and requests a pay advance of $955, which she will pay back in
equal parts on the September 28 and October 12 paychecks. Melinda is single with 0
withholding allowance and is paid $39,260 per year. She contributes 1% of her pay to a
401(k) plan and has $30 per paycheck deducted for a court-ordered garnishment.
GL Kennels has employees with pay schedules that vary based on job classification.
Required: Compute the federal income tax liability for each employee using the
percentage method in Appendix C. Assume that no pre-tax deductions exist for any
employee. (Round your intermediate calculations and final answers to 2 decimal
places.) - ANSWER Employee: C. Wells
Marital Status: M
No. of Exemptions: 6
Pay Frequency: Biweekly
Pay Amount: $3,100
Percentage Method: $238.98
Employee: L. Decker
Marital Status: M
No. of Exemptions: 3
Pay Frequency: Weekly
Pay Amount: $1,850
Percentage Method: $199.60
Employee: J. Swaby
Marital Status: S
No. of Exemptions: 4
EXAM QUESTIONS AND ANSWERS 100%
CORRECT!!
,Milligan's Millworks pays its employees on a weekly basis. Using the Wage Bracket
Method Tables for Income Tax Withholding in Appendix C, compute the federal income
tax withholdings for the following employees of Milligan's Millworks. (Assume that no
pre-tax deductions exist for any employee.) - ANSWER Employee: D. Balestreri
Marital Status: S
No. of Exemptions: 10
Weekly Pay: $1,010
Federal Tax: $20
Employee: Y. Milligan
Marital Status: S
No. of Exemptions: 7
Weekly Pay: $1,163
Federal Tax: $77
Employee: H. Curran
Marital Status: M
No. of Exemptions: 2
Weekly Pay: $850
Federal Tax: $62
Employee: D. Liberti
Marital Status: M
No. of Exemptions: 6
Weekly Pay: $1,095
Federal Tax: $51
Using the percentage method in Appendix C, calculate the federal withholding amounts
for the following employees. (Round your intermediate calculations and final answers to
2 decimal places.) - ANSWER Employee: S. Calder
Marital Status: M
Withholdings: 4
Pay Frequency: Quarterly
Amount per Pay Period: $22,750
Federal Income Tax: $2,247.45
Employee: P. Singh
Marital Status: S
, Withholdings: 7
Pay Frequency: Annually
Amount per Pay Period: $215,000
Federal Income Tax: $44,599.75
Employee: B. Nelson
Marital Status: M
Withholdings: 5
Pay Frequency: Daily
Amount per Pay Period: $885
Federal Income Tax: $166.20
Jane Heinlein is the payroll accountant for Sia Lights of Carter, Nebraska. The
employees of Sia Lights are paid biweekly. An employee, Melinda Gunnarson, comes to
her on September 14 and requests a pay advance of $955, which she will pay back in
equal parts on the September 28 and October 12 paychecks. Melinda is single with 0
withholding allowance and is paid $39,260 per year. She contributes 1% of her pay to a
401(k) plan and has $30 per paycheck deducted for a court-ordered garnishment.
GL Kennels has employees with pay schedules that vary based on job classification.
Required: Compute the federal income tax liability for each employee using the
percentage method in Appendix C. Assume that no pre-tax deductions exist for any
employee. (Round your intermediate calculations and final answers to 2 decimal
places.) - ANSWER Employee: C. Wells
Marital Status: M
No. of Exemptions: 6
Pay Frequency: Biweekly
Pay Amount: $3,100
Percentage Method: $238.98
Employee: L. Decker
Marital Status: M
No. of Exemptions: 3
Pay Frequency: Weekly
Pay Amount: $1,850
Percentage Method: $199.60
Employee: J. Swaby
Marital Status: S
No. of Exemptions: 4
