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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
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 $2000 per biweekly payroll. Katie, a single woman with one exemption, also earns $2000 per biweekly payroll. The biweekly employee contribution to health care that would be subject to the cafeteria plan is $100. Compute taxable income for Karen and Katie.
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