PSc 3-7: Calculate Federal (Percentage Method), State, and Local Income Tax Withholding For each employee listed, use the percentage method to calculate federal income tax withholding. Then calculate both the state income tax withholding (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 income tax withholding. 1. Frank Claiborne (Married; ve federal withholding allowances) earned weekly gross pay of $2.050. 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 1.5% of an employee's taxable pay (which is the same for federal and local income tax withholding} on residents and 1.4% of an employee's taxable pay on nonresidents. 2. Douglass Lyons (Married; two federal withholding allowances) earned weekly gross pay of $3,825. He participates in a exible spending account, to which he contributes $275 during the period. The city in which he lives and works levies a tax of 3.2% of an employee's taxable pay (which is the same for federal and local income tax withholding} on residents and 0.8% of an employee's taxable pay on nonresidents. 3. David Maloney (Married; seven federal withholding allowances] earned weekly gross pay of $1.300. He does not request that any voluntary deductions be made from his gross pay. The city in which he lives and works levies a tax of 1.9% of an employee's taxable pay (which is the same for federal and local income tax withholding) on both residents and nonresidents. 4. Antonio Garcia (Single: three federal withholding allowances) earned weekly gross pay of $2.940. He participates in a cafeteria plan, to which he pays $250 during the period. The city in which he works levies a tax of $5/week on employees who work within city limits