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.)

Name M/S No. of Overtime Hours No. of Holiday Hours Commissions Gross Earnings Section 125 Taxable Taxable Wages for Wages for Federal W/H FICA Karen Wilson-no cafeteria plan Karen Wilson-cafeteria plan Katie Smith-no cafeteria plan Katie Smith-cafeteria plan M M S Hourly Rate No. of #W/H or Period Regular wage Hours 4 $ 2,000.00 4 $ 2,000.00 $ 2,000.00 $ 2,000.00 S Name Taxable Taxable Gross Earnings Wages for Wages for Federal W/H FICA Federal W/H Social Security Tax Medicare W/H State W/H Tax Net Pay Karen Wilson-no cafeteria plan Karen Wilson-cafeteria plan Katie Smithno cafeteria plan Katie Smith-cafeteria plan Name M/S No. of Overtime Hours No. of Holiday Hours Commissions Gross Earnings Section 125 Taxable Taxable Wages for Wages for Federal W/H FICA Karen Wilson-no cafeteria plan Karen Wilson-cafeteria plan Katie Smith-no cafeteria plan Katie Smith-cafeteria plan M M S Hourly Rate No. of #W/H or Period Regular wage Hours 4 $ 2,000.00 4 $ 2,000.00 $ 2,000.00 $ 2,000.00 S Name Taxable Taxable Gross Earnings Wages for Wages for Federal W/H FICA Federal W/H Social Security Tax Medicare W/H State W/H Tax Net Pay Karen Wilson-no cafeteria plan Karen Wilson-cafeteria plan Katie Smithno cafeteria plan Katie Smith-cafeteria plan