For the February 9, 2018, pay period, use the gross pay totals from the end of Chapter 4 and compute the net pay for each employee. Once you have computed the net pay (using the wage-bracket tables in Appendix C), state withholding tax for Vermont is computed at 3.55 percent of taxable wages (i.e., gross pay less pre-tax deductions). Note that the first pay period comprises only one week of work during the February 12 pay period and that the federal income tax should be determined using the biweekly tables in Appendix C.

Voluntary deductions for each employee are as follows:

Name	Deduction
Millen	Insurance: $155/paycheck  401(k): 3% of gross pay
Towle	Insurance: $100/paycheck  401(k): 5% of gross pay
Long	Insurance: $155/paycheck  401(k): 2% of gross pay
Shangraw	Insurance: $100/paycheck  401(k): 3% of gross pay
Lewis	Insurance: $155/paycheck  401(k): 4% of gross pay
Schwartz	Insurance: $100/paycheck  401(k): 5% of gross pay
Prevosti	Insurance: $155/paycheck  401(k): 6% of gross pay
You	Insurance: $100/paycheck  401(k): 2% of gross pay