Carolyne earns $173,472 per year. She is married and claims two withholding allowances. Use the percentage method for your calculations. (Round your answer to 2 decimal places.)a. What is her withholding per pay period if she is paid on a weekly basis (assume 52 weeks)? b. What is her withholding per pay period if she is paid on a semimonthly basis? c. What is her withholding per pay period if she is paid on a monthly basis? d. In each of the above circumstances, should the annual withholding amount differ? Explain.
What will be an ideal response?
a. $493.75
b. $1,069.88
c. $2,139.57
d. No, each withholding period approximates the annual amount of withholding.
a. $173,472/52 = $3,336.00 ? $159.60 = $3,176.40 ? $1,711.00 = $1,465.40 × 22% = $322.39 + $171.36 = $493.75
b. $173,472/24 = $7,228.00 ? $345.80 = $6,882.20 ? $3,706.00 = $3,176.20 × 22% = $698.76 + $371.12 = $1,069.88
c. $173,472/12 = $14,456.00 ? $691.60 = $13,764.40 ? $7,413.00 = $6,351.40 × 22%= $1,397.31 + $742.26 = $2,139.57
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