Example $4-2$

Carl Jamison, an employee for the Scharman School, belongs to a tax$-$deferred retirement plan to which he contributes $3\%$ of his pay which is

matched by the school. His biweekly pay is $$2,500.$ Because of the deferral $(3\%$$$2,500=$$$75),$$$2,425$ is subject to federal income tax

withholding.

$($nonqualified$)$ each week. Her employer matches this $$35$ each week.

Determine Whiteweiler's take$-$home pay if she is single.

Enter deductions beginning with a minus sign $(-).$ Round your calculations and final answers to the nearest cent.

Forms W$-4$ From $2020$ or Later with Standard Withholding and $2023$ FICA rates have been used.

Click here to access the Wage$-$Bracket Method Tables.

Calculate net pay. Consider the effect on FIT when the employee has a $401($k$)$ deduction. FIT taxable wages should be gross pay minus the $401($k$)$ deduction.