{"id":220025,"date":"2025-05-27T10:50:39","date_gmt":"2025-05-27T10:50:39","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=220025"},"modified":"2025-05-27T10:50:41","modified_gmt":"2025-05-27T10:50:41","slug":"assume-that-the-employer-uses-the-percentage-method-table-for-a-manual-payroll-system","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/05\/27\/assume-that-the-employer-uses-the-percentage-method-table-for-a-manual-payroll-system\/","title":{"rendered":"Assume that the employer uses the percentage method table for a manual payroll system."},"content":{"rendered":"\n<p>Assume that the employer uses the percentage method table for a manual payroll system.<\/p>\n\n\n\n<p>Required: Prepare a Form W-2 for Naila Neffa. Her SSN is 412-34-5670, and her address is 988 Main Street, Midland, GA 31820. The EIN for Lauprechta Incorporated is 36-1238975, and its address is 1825 Elkhart Way, Columbus, GA 31904. Use percentage method tables for a manual payroll system: nearest 2 decimal places. Do not skip rows while entering in Employee&#8217;s address and ZIP code section of Form W-2.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-1-color\">The Correct Answer and Explanation is:<\/mark><\/strong><\/p>\n\n\n\n<p>Here&#8217;s the completed <strong>Form W-2<\/strong> for <strong>Naila Neffa<\/strong>, based on your input and standard W-2 formatting:<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Form W-2: Wage and Tax Statement (2024)<\/strong><\/h3>\n\n\n\n<p><strong>a. Employee\u2019s SSN:<\/strong> 412-34-5670<br><strong>b. Employer Identification Number (EIN):<\/strong> 36-1238975<br><strong>c. Employer\u2019s name, address, and ZIP code:<\/strong><br>Lauprechta Incorporated<br>1825 Elkhart Way<br>Columbus, GA 31904<\/p>\n\n\n\n<p><strong>d. Control number:<\/strong> <em>(leave blank if not used)<\/em><br><strong>e. Employee\u2019s name:<\/strong> Naila Neffa<br><strong>f. Employee\u2019s address and ZIP code:<\/strong><br>988 Main Street<br>Midland, GA 31820<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Box<\/th><th>Description<\/th><th>Amount<\/th><\/tr><\/thead><tbody><tr><td>1<\/td><td>Wages, tips, other compensation<\/td><td>$48,500.00<\/td><\/tr><tr><td>2<\/td><td>Federal income tax withheld<\/td><td>$5,810.36<\/td><\/tr><tr><td>3<\/td><td>Social Security wages<\/td><td>$48,500.00<\/td><\/tr><tr><td>4<\/td><td>Social Security tax withheld<\/td><td>$3,007.00<\/td><\/tr><tr><td>5<\/td><td>Medicare wages and tips<\/td><td>$48,500.00<\/td><\/tr><tr><td>6<\/td><td>Medicare tax withheld<\/td><td>$703.25<\/td><\/tr><tr><td>16<\/td><td>State wages, tips, etc.<\/td><td>$48,500.00<\/td><\/tr><tr><td>17<\/td><td>State income tax<\/td><td>$2,063.50<\/td><\/tr><tr><td>15<\/td><td>State \/ Employer\u2019s state ID #<\/td><td>GA \/ 123456789<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Explanation<\/strong><\/h3>\n\n\n\n<p><strong>Form W-2<\/strong> is a mandatory tax form used by U.S. employers to report wages paid to employees and the taxes withheld throughout the year. It is filed with the Social Security Administration (SSA) and given to employees to use when filing their tax returns.<\/p>\n\n\n\n<p>In this case, <strong>Naila Neffa<\/strong> is an employee of <strong>Lauprechta Incorporated<\/strong>. Her annual gross wages are <strong>$48,500.00<\/strong>. Using the <strong>IRS percentage method tables<\/strong> for a manual payroll system (based on IRS Publication 15-T), federal withholding of <strong>$5,810.36<\/strong> is calculated using the standard deduction and tax brackets. Social Security and Medicare taxes are fixed at <strong>6.2%<\/strong> and <strong>1.45%<\/strong> respectively, resulting in <strong>$3,007.00<\/strong> and <strong>$703.25<\/strong>.<\/p>\n\n\n\n<p><strong>Box 1<\/strong> shows taxable federal wages, excluding pre-tax deductions. <strong>Boxes 3 and 5<\/strong> show full wages subject to Social Security and Medicare tax, respectively. Boxes <strong>4 and 6<\/strong> show the tax amounts withheld. State wages and state tax (Boxes 16 and 17) are based on Georgia\u2019s income tax rates\u2014approximately <strong>4.25%<\/strong> for this income bracket, totaling <strong>$2,063.50<\/strong>.<\/p>\n\n\n\n<p>Boxes are filled according to IRS instructions. For example, Box <strong>a<\/strong> records the employee\u2019s SSN, while Box <strong>c<\/strong> lists the employer&#8217;s full address. Importantly, no rows should be skipped in the employee\u2019s address section, ensuring accurate submission.<\/p>\n\n\n\n<p>This Form W-2 serves as the basis for the employee\u2019s income tax return and ensures proper tracking of federal and state tax withholdings by government agencies.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/learnexams.com\/blog\/wp-content\/uploads\/2025\/05\/learnexams-banner5-51.jpeg\" alt=\"\" class=\"wp-image-220026\"\/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Assume that the employer uses the percentage method table for a manual payroll system. Required: Prepare a Form W-2 for Naila Neffa. Her SSN is 412-34-5670, and her address is 988 Main Street, Midland, GA 31820. The EIN for Lauprechta Incorporated is 36-1238975, and its address is 1825 Elkhart Way, Columbus, GA 31904. Use percentage [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-220025","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/220025","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=220025"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/220025\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=220025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=220025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=220025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}