Compute the net pay for Briar Khan and Hollis Hart. Assume that they are paid a $2,500 salary biweekly, subject to federal income tax (use the wagebracket method) in Appendix C and FICA taxes and have no other deductions from their pay. They have a state tax rate of 3 percent. If they choose to participate in the cafeteria plan, the deduction for the pay period is

$100; otherwise, there is no deduction for the cafeteria plan. The cafeteria plan qualifies under Section 125. You do not need to complete the number of hours. Additional information for Briar: Box 2 is not checked, and the dependents are under 17.

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Hourly Taxable Wages for Taxable Rate or No. of No. of No. of Federal/ Wages Filing Name Period Status Dependents Wage Regular Overtime Holiday Commiss- Gross Hours Hours Hours Cafeteria State for ions Earnings Plan W/H FICA Briar Khan-no MJ 2 <17 2,500.00 cafeteria plan Briar Khan- MJ 2 <17 2,500.00 cafeteria plan Hollis Hart-no S 0 2,500.00 cafeteria plan Hollis Hart- cafeteria plan S 0 2,500.00 Taxable Wages for Taxable Gross Federal/ Wages Social Federal Security Medicare State W/H Tax W/H Tax Net Pay Name Briar Khan-no cafeteria plan Briar Khan cafeteria plan Hollis Hart-no cafeteria plan Hollis Hart-cafeteria plan Earnings State W/H for FICA W/H Tax