Problem $5-4$A $($Algo$)$

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Lexington is the payroll accountant at All's Fair Gifts. The employees of All's Fair Gifts are paid semimonthly. Asa comes to Lexington

on April $7$ and requests a pay advance of $$1,000,$ which Asa will pay back in equal parts on the April $14$ and May $15$ paychecks. Asa is

single, with one dependent under $17,$ is paid $$62,800$ per year, contributes $3$ percent of gross pay to a $401(k),$ and has $$141$ per

paycheck deducted for a Section $125$ plan.

Required:

Compute the net pay on Asa's April $14$ paycheck. The applicable state income tax rate is $5\mathrm{.}25$ percent. Use the wage$-$bracket method

for manual payroll systems with Forms W$-4$ from $2020$ or later in Appendix C to determine the federal income tax. Assume box $2$ is not

checked.

Note: Round your intermediate calculations and final answer to $2$ decimal places.