FPC Chapter 2.4
IRS regulations define all of the following payments as supplemental payments EXCEPT:
A. base salary.
B. retroactive pay.
C. severance.
D. overtime pay. - ANS-A. base salary.
Using the Wage-Bracket Method, calculate the employee's federal income tax withholding
based on the following information. An employee earns $750.00 semimonthly and claims single,
2 allowance(s). - ANS-$32.00
***Requires looking at Wage-Bracket Tables***
Using the Percentage Method, calculate the federal income tax withholding based on the
following information. An employee earns $2,500.00 semimonthly and claims married, 3
allowance(s). - ANS-$206.99
***Must See Percentage Wage Table***
$2500.00 - Taxable Wages
$168.80 * 3 = 506.40 - Allowance Value
$2500.00 - $506.40 = $1993.60 - Difference
$1993.60 * 0.15 + $77.30 = $376.34 - From Table
$1993.60 - $1129.00 = $864.60 - From table
$864.60 * 0.15 + $77.30 = $206.99
Using the Optional Flat Rate Method, calculate the federal income tax withholding based on the
following information: An employee earns a bonus of $399.00 and has total YTD wages of
$20,000.00. - ANS-$99.75
***Optional Flat Rate is 25%***
$399.00 * 0.25 = 99.75
Calculate the federal income tax withholding on an employee's supplemental wage payment of
$200,000.00. The employee has received $1,100,000.00 in supplemental wages during the
year. - ANS-$79,200.00
*** The 39.6% mandatory flat rate withholding applies to the excess of supplemental wages over
one million dollars***
, $200,000.00 * 0.396
Using the Wage-Bracket Method, calculate the employee's federal income tax withholding
based on the following information. An employee earns $1,280.00 semimonthly and claims
married, 0 allowance(s). - ANS-$101.00
***See Wage Bracket***
NOTE: when an earning falls on two brackets the "At Least" one is taken
An employee is paid semimonthly and claims married, 3 allowance(s). Using the Percentage
Method, calculate the value of the employee's withholding allowances each pay period. -
ANS-506.40
***Using the withholding Table a Semimontly withholding is $168.80
$168.80 * 3 = $506.40
What is the definition of imputed income?
A. Taxable value of non-cash benefits the employee receives
B. Taxes withheld from the employee based on the benefits received
C. Amount recorded in the general ledger system
D. Cash the employee is paid through the payroll system - ANS-A. Taxable value of non-cash
benefits the employee receives
***Imputed income represents the value of the benefits employees receive from the employer
and must be included in the employees' income. In most cases, employees do not receive cash
as the benefit.***
Using the Wage-Bracket Method, calculate the federal income tax withholding, based on the
following information. An employee earns $1,420.00 semimonthly and claims married, 3
allowance(s). - ANS-$57.00
***See Wage Bracket***
Using the Wage-Bracket Method, calculate the federal income tax withholding based on the
following information. An employee earns $870.00 semimonthly and claims single with 2
allowance(s). - ANS-$46.00
***See Wage Bracket***
Using the Optional Flat Rate Method and the Wage-Bracket Method, calculate the federal
income tax withholding based on the following information. An employee earns $1,420.00
IRS regulations define all of the following payments as supplemental payments EXCEPT:
A. base salary.
B. retroactive pay.
C. severance.
D. overtime pay. - ANS-A. base salary.
Using the Wage-Bracket Method, calculate the employee's federal income tax withholding
based on the following information. An employee earns $750.00 semimonthly and claims single,
2 allowance(s). - ANS-$32.00
***Requires looking at Wage-Bracket Tables***
Using the Percentage Method, calculate the federal income tax withholding based on the
following information. An employee earns $2,500.00 semimonthly and claims married, 3
allowance(s). - ANS-$206.99
***Must See Percentage Wage Table***
$2500.00 - Taxable Wages
$168.80 * 3 = 506.40 - Allowance Value
$2500.00 - $506.40 = $1993.60 - Difference
$1993.60 * 0.15 + $77.30 = $376.34 - From Table
$1993.60 - $1129.00 = $864.60 - From table
$864.60 * 0.15 + $77.30 = $206.99
Using the Optional Flat Rate Method, calculate the federal income tax withholding based on the
following information: An employee earns a bonus of $399.00 and has total YTD wages of
$20,000.00. - ANS-$99.75
***Optional Flat Rate is 25%***
$399.00 * 0.25 = 99.75
Calculate the federal income tax withholding on an employee's supplemental wage payment of
$200,000.00. The employee has received $1,100,000.00 in supplemental wages during the
year. - ANS-$79,200.00
*** The 39.6% mandatory flat rate withholding applies to the excess of supplemental wages over
one million dollars***
, $200,000.00 * 0.396
Using the Wage-Bracket Method, calculate the employee's federal income tax withholding
based on the following information. An employee earns $1,280.00 semimonthly and claims
married, 0 allowance(s). - ANS-$101.00
***See Wage Bracket***
NOTE: when an earning falls on two brackets the "At Least" one is taken
An employee is paid semimonthly and claims married, 3 allowance(s). Using the Percentage
Method, calculate the value of the employee's withholding allowances each pay period. -
ANS-506.40
***Using the withholding Table a Semimontly withholding is $168.80
$168.80 * 3 = $506.40
What is the definition of imputed income?
A. Taxable value of non-cash benefits the employee receives
B. Taxes withheld from the employee based on the benefits received
C. Amount recorded in the general ledger system
D. Cash the employee is paid through the payroll system - ANS-A. Taxable value of non-cash
benefits the employee receives
***Imputed income represents the value of the benefits employees receive from the employer
and must be included in the employees' income. In most cases, employees do not receive cash
as the benefit.***
Using the Wage-Bracket Method, calculate the federal income tax withholding, based on the
following information. An employee earns $1,420.00 semimonthly and claims married, 3
allowance(s). - ANS-$57.00
***See Wage Bracket***
Using the Wage-Bracket Method, calculate the federal income tax withholding based on the
following information. An employee earns $870.00 semimonthly and claims single with 2
allowance(s). - ANS-$46.00
***See Wage Bracket***
Using the Optional Flat Rate Method and the Wage-Bracket Method, calculate the federal
income tax withholding based on the following information. An employee earns $1,420.00
