Question
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
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 | $ |
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Managerial Accounting A Focus on Ethical Decision Making
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
5th edition
324663854, 978-0324663853
