Assume that these employees are paid biweekly, subject to federal income tax (use the wage-bracket method) 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. Use the Wage Bracket Method

Problem 5-1A Compute the net pay for Karen Wilson and Katie Smith. Assume that they are paid biweekly subject to federal income tax (use the wage-bracket method) 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. Use the Wage Bracket Method Tables for Income Tax Withholding in Appendix C. (Round your intermediate calculations and final answers to 2 decimal places.) No. of No of Noma WS Hourly Rate of Porlod Regular Overtime No of Holiday Commissions Gross Carings Section 128 Wages for Hours Federal WH FICA Karen Wilson . no calotoria plan M 4 # 2.000.00 Karon Wilson . cafeteria plan 2.000.00 Katio Smith - no cafotona plan 4 20:0 00 Habia Smith . cafeteria plan $2,059 00 Name Grows Eamings Wages lar Wagon for Foderal Will Social Security Medicare WIH State VH Tax Not Par Federal WH FICA Karen Wilson - no cafeteria plan Karon Wilson - cafeteria plan Katie Smith - no pilotria plan Kabe Smith - cafeteria plan