Example 4-2 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% x $2,500-$75), $2,425 is subject to federal income tax withholding. George Clausen (age 48) is employed by Kline Company and is paid an annual salary of $42,640. He has just decided to join the company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Clausen: Round your answer to the nearest cent. As we go to press, the federal income tax rates for 2022 are being determined by budget talks in Washington and not available for publication. For this edition, the 2021 federal income tax tables for Manual Systems with Forms W-4 from 2020 or Later with Standard Withholding and 2021 FICA rates have been used. a. What is the maximum that he can contribute into this retirement fund? b. What would be the company's contribution? Note: for items c. & d. below, round interim amounts to two decimal places. Use these values in subsequent computations then round final answer to two decimal places. c. What would be his weekly take-home if he contributes the maximum allowed retirement contribution (married filing jointly, wage bracket method, and a 2.3% state income tax on total wages)? Click here to access the Wage-Bracket Method Tables.