For each employee listed, use the wage-bracket method to calculate federal income tax withholding, assuming that each has submitted a pre-2020 Form W-4. Then calculate both the state withholding tax (assuming a state tax rate of 5% of taxable pay, with taxable pay being the same for federal and state income tax withholding) and the local withholding tax.

1. Jay Monroe (single; two federal withholding allowances) earned weekly gross pay of $1,145. For each period, he makes a 401(k) retirement plan contribution of 12% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 2% of an employees taxable pay (which is the same for federal and local income tax withholding) on residents and 1.7% of an employees taxable pay on nonresidents.

2. Gus Damon (married; nine federal withholding allowances) earned weekly gross pay of $1,200. He contributed $125 to a flexible spending account during the period. The city in which he lives and works levies a tax of 3% of an employees taxable pay (which is the same for federal and local income tax withholding) on residents and 0.4% of an employees taxable pay on nonresidents.

3. Kenneth Riley (single; no federal withholding allowances) earned weekly gross pay of $1,000. For each period, he makes a 403(b) retirement plan contribution of 5% of gross pay. The city in which he lives and works levies a tax of 1.7% of an employees taxable pay (which is the same for federal and local income tax withholding) on both residents and nonresidents.

4. Ross McMichael (married; two federal withholding allowances) earned weekly gross pay of $970. He paid $60 to a cafeteria plan during the period. The city in which he works levies a tax of $8/week on employees who work within city limits.