Eaton Enterprises uses the wage-bracket method to determine federal income tax withholding

Example 4-4

To use the 2023 Wage Bracket Method for Manual Payroll Systems With Forms W-4 From 2020 or Later using Standard Withholding, follow the steps illustrated below.

Step 1
Select the withholding table that applies to the employee's pay period. ➡ Adrienne Huff is married filing jointly (MFJ). She is paid weekly at a rate of $815.
Step 2
Locate the wage bracket (the first two columns of the table) in which the employee's gross wages fall. ➡ Locate the appropriate wage bracket (see Figure 4.7):
At least $815 but less than $825
Step 3
Follow the line for the wage bracket across to the right to the column showing the appropriate filing status with standard withholding. Withhold this amount of tax. ➡ Move across the line to the column showing Married Filing Jointly, Standard withholding.
The tax to withhold is $29.

Eaton Enterprises uses the wage-bracket method to determine federal income tax withholding on its employees. Find the amount to withhold from the wages paid to each employee. Enter all amounts as positive numbers. If an amount is zero, enter "0." Round interim calculations to two decimals and use in subsequent computations. Round final answer to two decimal places.

As we go to press, the federal income tax rates for 2024 are being determined by budget talks in Washington, and are not available for publication. For this edition, the 2023 federal income tax tables for Manual Systems with Forms W-4 From 2020 or Later with Standard Withholding and 2023 FICA rates have been used.

Click here to access the Wage-Bracket Method Tables.

Employee

Filing
Status

No. of
Withholding
Allowances Payroll Period
W = Weekly
S = Semimonthly
M = Monthly
D = Daily

Wage

Amount to Be
Withheld
Tarra James HH N/A W $1,350 fill in the blank 1 of 9$
108
Mike Cramden MFJ N/A W 590 fill in the blank 2 of 9
6
Jim Jones HH N/A W 675 fill in the blank 3 of 9
28
Joan Kern MFJ N/A M 3,100 fill in the blank 4 of 9
80
Mary Long S N/A M 2,730 fill in the blank 5 of 9
173
Cathy Luis HH N/A S 955 fill in the blank 6 of 9
10
Josie Martin MFJ N/A D 108 fill in the blank 7 of 9
0.1
Terri Singer HH N/A S 2,500 fill in the blank 8 of 9
184
Shelby Torres HH N/A M 3,215 fill in the blank 9 of 9
153