Alejandro Garcia (single; 3 federal withholding allowances) earned weekly gross pay of $1,110. Hernparticipates in a cafeteria plan, to which he pays $50 during the period. The city in which he works levies a tax of $12/week on employees who work within city limits.

Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $

Tyler Howard (married; 4 federal withholding allowances) earned weekly gross pay of $1,320. For each period, he makes a 403(b) retirement plan contribution of 7.5% of gross pay. The city in which he lives and works levies a tax of 1.35% of an employee's taxable pay (which is the same for federal and local income tax withholding) on both residents and nonresidents.

Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $

Paul Bronson (single; 1 federal withholding allowance) earned weekly gross pay of $1,284. For each period, he makes a 401(k) retirement plan contribution of 10.5% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 2% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents, and 0.7% of an employee's taxable pay on nonresidents.

Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $

Stephen McPherson (married; 5 federal withholding allowances) earned weekly gross pay of $990. He participates in a flexible spending account, to which he contributes $70 during the period. The city in which he lives and works levies a tax of 2.4% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents, and 1.3% of an employee's taxable pay on nonresidents.

Federal income tax withholding = $
State income tax withholding = $
Local income tax withholding = $

For each employee listed, use the wage-bracket method to calculate federal income tax withholding. Then calculate both the state income tax withholding (assuming a state tax rate of 5.0% of taxable pay, with taxable pay being the same for federal and state income tax withholding), and the local income tax withholding. Refer to Appendix A, 2018 Federal Tax Tables in your textbook.

NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

Answer rating: 100% (QA)

Note Contributions to traditional 401ks or other qualified retirement plans are made with pretax dollars Table 1 Monthly Semimonthly Biweekly Weekly Daily 12 24 26 52 260 1 Paul Bronson Taxable wages ... View the full answer