Douglass Lyons (married; 2 federal withholding allowances) earned weekly gross pay of $3,825. He participates in a flexible 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 0.80% of an employee's taxable pay on nonresidents.