Compute the net pay for Karen Wilson and Katie Smith. Assume that they are paid a $2,620 salary biweekly, subject to federal income tax (use the wage-bracket 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 Karen: Box 2 is not checked and the dependents are under 17. Additional information for Katie: Box 2 is checked. (Round your intermediate calculations and final answers to 2 decimal places.)

Name

Filing Status

Hourly Rate or Period wage

No. of Regular Hours

No. of Overtime Hours

No. of Holiday Hours

Commissions

Gross Earnings

Section 125

Taxable Wages for Federal / State W/H

Taxable Wages for FICA

Karen Wilsonno cafeteria plan

MJ-2

$2,620.00

Karen Wilsoncafeteria plan

MJ-2

$2,620.00

Katie Smithno cafeteria plan

S-0

$2,620.00

Katie Smithcafeteria plan

S-0

$2,620.00

Name

Gross Earnings

Taxable Wages for Federal / State W/H

Taxable Wages for FICA

Federal W/H

Social Security Tax

Medicare W/H Tax

State W/H Tax

Net Pay

Karen Wilsonno cafeteria plan

Karen Wilsoncafeteria plan

Katie Smithno cafeteria plan

Katie Smithcafeteria plan