Karen and Katie are looking at the companys health care options and trying to determine how much their net pay will decrease if they sign up for the qualified cafeteria plan offered by the company. Karen, a married woman with four exemptions, earns $2,000 per biweekly payroll. Katie, a single woman with one exemption, also earns $2,000 per biweekly payroll. The biweekly employee contribution to health care that would be subject to the cafeteria plan is $100. Compute the net pay for Karen and Katie. Assume that they are subject to Federal income tax (using the wage-bracket method) and FICA taxes and have no other deductions from their pay. Use Appendix C. (Round your answers to 2 decimal places.)

Karen's net pay if she declines to participate in the cafeteria plan
Karen's net pay if she participates in the cafeteria plan
Katie's net pay if she declines to participate in the cafeteria plan
Katie's net pay if she participates in the cafeteria plan

The answers are NOT

1720

1635

1563

1488