108 Payroll Accounting Chapter 3: Federal and State income 3: Federal and State income Tax Withholding late Federal (Percentage Method), State, and Psa 3-7 Calculate Federal (Percen Local Income Tax Withholding Refer to Appendix A, 2018 Federal Tax Tables use the percentage method to calculate federal income tax withholding. Then calculate x withholding (assuming a state tax rate of 5% of taxable pay, with taxable pay being the ax withholding), and the local income tax withholding. For each employee listed, use the percentage meth both the state income tax withholding (assuming a state same for federal and state income tax withholding), and the local income tax oldly gross pay of $1,030. For each Walter Ferrell (married; four federal withholding allowances) earned weekly gross pay of period, he makes a 401(k) retirement plan contribution of 14% of gross pay. The city of gross pay. The city in which he works (he lives elsewhere) levies a tax of 1.3% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents and 1.1% of an employee's taxable pay on nonresidents. 2. Lucas Sedaris (married; three federal withholding allowances) earned weekly gross pay of $2,800. He participates in a flexible spending account, to which he contributed $150 during the period. The city in which he lives and works levies a tax of 3.1% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents and 2.4% of an employee's taxable pay on nonresidents. 3. Darrell Roper (married; six federal withholding allowances) earned weekly gross pay of $1,540. 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 2.5% of an employee's taxable pay (which is the same for federal and local income tax withholding) on both residents and nonresidents. 4. Giuseppe Fortuna (single; two federal withholding allowances) earned weekly gross pay of $3,820. He participates in a cafeteria plan, to which he paid $175 during the period. The city in which he works levies a tax of $13/week on employees who work within city limits