Example 4-1

Carl Jamison, an employee for the Scharman School, belongs to a tax-deferred retirement plan to which he contributes 3 percent 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.

Julie Whiteweiler made $930 this week. Only social security (fully taxable) and federal income taxes attach to her pay. Whiteweiler contributes $50 each week to her company's 401(k) plan and has $35 put into her health savings account (nonqualified) each week. Her employer matches this $35 each week.

Determine Whiteweiler's take-home pay if she is married and claims 2 allowances (use the wage-bracket method).

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

Click here to access the Wage-Bracket Method Tables.

Gross pay	$
HSA contributions
401(k) deductions
OASDI tax
HI tax
FIT
Net pay	$