Lexington is the payroll accountant at All's Fair Gifts. The employees of All's Fair Gifts are paid semimonthly. Asa comes to Lexington on April 7 and requests a pay advance of $1,000, which Asa will pay back in equal parts on the April 14 and May 15 paychecks. Asa is single, with one dependent under 17, is paid $58,000 per year, contributes 3 percent of gross pay to a 401(k), and has $135 per paycheck deducted for a Section 125 plan. Required: Compute the net pay on Asa's April 14 paycheck. The applicable state income tax rate is 5.25 percent. Use the wage-bracket method for manual payroll systems with Forms W-4 from 2020 or later in Appendix C to determine the federal income tax. Assume box 2 is not checked. Note: Round your intermediate calculations and final answer to 2 decimal places. 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later STANDARD Withholding Rate Schedules WEEKLY Payroll Period (Use these if the box in Step 2 of Form W-4 is NOT checked) Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage Amount (line 1h) is: At least- But less than- The tentative amount to withhold is: of the amount that the Adjusted If the Adjusted Wage Amount (line 1h) is: of the Plus this A B C percentage D Wage exceeds At least- But less than- The tentative amount to withhold is: amount that Plus this percentage the Adjusted Wage exceeds- E A C D E Married Filing Jointly Married Filing Jointly $0 $533 $533 $0.00 0% $0 $0 $266 $0.00 0% $0 $956 $0.00 10% $533 $266 $478 $0.00 10% $266 $956 $2,253 $42.30 12% $956 $478 $1,126 $21.20 12% $478 $2,253 $4,201 $197.94 22% $2,253 $1,126 $2,100 $98.96 22% $1,126 $4,201 $7,537 $626.50 24% $4,201 $2,100 $3,768 $313.24 24% $2,100 $7,537 $9,427 $1,427.14 32% $7,537 $3,768 $4,713 $713.56 32% $3,768 $9,427 $13,874 $2,031.94 35% $9,427 $4,713 $6,937 $1,015.96 35% $4,713 $13,874 $3,588.39 37% $13,874 $6,937 $1,794.36 37% $6,937 Single or Married Filing Separately Single or Married Filing Separately $0 $266 $0.00 0% $0 $0 $133 $0.00 0% $0 $266 $478 $0.00 10% $266 $133 $239 $0.00 10% $133 $478 $1,126 $21.20 12% $478 $239 $563 $10.60 12% $239 $1,126 $2,100 $98.96 22% $1,126 $563 $1,050 $49.48 22% $563 $2,100 $3,768 $313.24 24% $2,100 $1,050 $1,884 $156.62 24% $1,050 $3,768 $4,713 $713.56 32% $3,768 $1,884 $2,357 $356.78 32% $1,884 $4,713 $11,384 $11,384 $1,015.96 $3,350.81 35% $4,713 $2,357 $5,692 $508.14 35% $2,357 37% $11,384 $5,692 $1,675.39 37% $5,692 Head of Household Head of Household $0 $400 $0.00 0% $0 $0 $200 $0.00 0% $0 $400 $702 $0.00 10% $400 $200 $351 $0.00 10% $200 $702 $1,551 $30.20 12% $702 $351 $775 $15.10 12% $351 $1,551 $2,234 $132.08 22% $1,551 $775 $1,117 $65.98 22% $775 $2,234 $3,902 $282.34 24% $2,234 $1,117 $1,951 $141.22 24% $1,117 $3,902 $4,847 $682.66 32% $3,902 $1,951 $2,424 $341.38 32% $1,951 $4,847 $11,517 $985.06 35% $4,847 $2,424 $5,759 $492.74 35% $2,424 $11,517 $3,319.56 37% $11,517 $5,759 $1,659.99 37% $5,759 (Source: Internal Revenue Service) 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later STANDARD Withholding Rate Schedules DAILY Payroll Period (Use these if the box in Step 2 of Form W-4 is NOT checked) Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage Amount (line 1h) is: The tentative At least- But less than- amount to withhold is: Plus this A B percentage D of the amount that the Adjusted Wage exceeds- If the Adjusted Wage Amount (line 1h) is: of the At least- But less than- The tentative amount to withhold is: amount that the Adjusted Plus this percentage Wage exceeds- E A B C D E Married Filing Jointly Married Filing Jointly $0.00 $106.50 $0.00 0% $0.00 $0.00 $53.30 $0.00 0% $0.00 $106.50 $191.20 $0.00 10% $106.50 $53.30 $95.60 $0.00 10% $53.30 $191.20 $450.60 $8.47 12% $191.20 $95.60 $225.30 $4.23 12% $95.60 $450.60 $840.20 $39.60 22% $450.60 $225.30 $420.10 $19.79 22% $225.30 $840.20 $1,507.30 $125.31 24% $840.20 $420.10 $753.70 $62.65 24% $420.10 $1,507.30 $1,885.40 $285.41 32% $1,507.30 $753.70 $942.70 $142.71 32% $753.70 $1,885.40 $2,774.80 $406.41 35% $1,885.40 $942.70 $1,387.40 $203.19 35% $942.70 $2,774.80 $717.70 37% $2,774.80 $1,387.40 $358.84 37% $1,387.40 Single or Married Filing Separately Single or Married Filing Separately $0.00 $53.30 $0.00 0% $0.00 $53.30 $95.60 $0.00 10% $53.30 $0.00 $26.60 $26.60 $0.00 0% $0.00 $47.80 $0.00 10% $26.60 $95.60 $225.30 $4.23 12% $95.60 $47.80 $112.60 $2.12 12% $47.80 $225.30 $420.10 $19.79 22% $225.30 $112.60 $210.00 $9.90 22% $112.60 $420.10 $753.70 $62.65 24% $420.10 $210.00 $376.80 $31.32 24% $210.00 $753.70 $942.70 $142.71 32% $753.70 $376.80 $471.30 $71.36 32% $376.80 $942.70 $2,276.80 $203.19 35% $942.70 $471.30 $1,138.40 $101.60 35% $471.30 $2,276.80 $670.13 37% $2,276.80 $1,138.40 $335.08 37% $1,138.40 Head of Household Head of Household $0.00 $80.00 $0.00 0% $0.00 $0.00 $40.00 $0.00 0% $0.00 $80.00 $140.40 $0.00 10% $80.00 $40.00 $70.20 $0.00 10% $40.00 $140.40 $310.20 $6.04 12% $140.40 $70.20 $155.10 $3.02 12% $70.20 $310.20 $446.70 $26.42 22% $310.20 $155.10 $223.40 $13.21 22% $155.10 $446.70 $780.40 $56.45 24% $446.70 $223.40 $390.20 $28.23 24% $223.40 $780.40 $969.40 $136.53 32% $780.40 $390.20 $484.70 $68.27 32% $390.20 $969.40 $2,303.50 $197.01 35% $969.40 $484.70 $1,151.70 $98.51 35% $484.70 $2,303.50 $663.95 37% $2,303.50 $1,151.70 $331.96 37% $1,151.70 O 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later STANDARD Withholding Rate Schedules BIWEEKLY Payroll Period (Use these if the box in Step 2 of Form W-4 is NOT checked) Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage Amount (line 1h) is: The tentative of the amount that the Adjusted If the Adjusted Wage of the Amount (line 1h) is: At least- But less than- amount to withhold is: Plus this A B percentage D Wage exceeds- E At least- But less than- The tentative amount to withhold is: Plus this percentage amount that the Adjusted Wage exceeds- A B E Married Filing Jointly Married Filing Jointly $0 $1,065 $0.00 0% $0 $0 $533 $0.00 0% $0 $1,065 $1,912 $0.00 10% $1,065 $533 $956 $0.00 10% $533 $1,912 $4,506 $84.70 12% $1,912 $956 $2,253 $42.30 12% $956 $4,506 $8,402 $395.98 22% $4,506 $2,253 $4,201 $197.94 22% $2,253 $8,402 $15,073 $1,253.10 24% $8,402 $4,201 $7,537 $626.50 24% $4,201 $15,073 $18,854 $2,854.14 32% $15,073 $7,537 $9,427 $1,427.14 32% $7,537 $18,854 $27,748 $4,064.06 35% $18,854 $9,427 $13,874 $2,031.94 35% $9,427 $27,748 $7,176.96 37% $27,748 $13,874 $3,588.39 37% $13,874 Single or Married Filing Separately Single or Married Filing Separately $0 $533 $0.00 0% $0 $0 $266 $0.00 0% $0 $533 $956 $0.00 10% $533 $266 $478 $0.00 10% $266 $956 $2,253 $42.30 12% $956 $478 $1,126 $21.20 12% $478 $2,253 $4,201 $197.94 22% $2,253 $1,126 $2,100 $98.96 22% $1,126 $4,201 $7,537 $626.50 24% $4,201 $2,100 $3,768 $313.24 24% $2,100 $7,537 $9,427 $1,427.14 32% $7,537 $3,768 $4,713 $713.56 32% $3,768 $9,427 $22,768 $2,031.94 35% $9,427 $4,713 $11,384 $1,015.96 35% $4,713 $22,768 $6,701.29 37% $22,768 $11,384 $3,350.81 37% $11,384 Head of Household Head of Household $0 $800 $0.00 0% $0 $0 $400 $0.00 0% $0 $800 $1,404 $0.00 10% $800 $400 $702 $0.00 10% $400 $1,404 $3,102 $60.40 12% $1,404 $702 $1,551 $30.20 12% $702 $3,102 $4,467 $264.16 22% $3,102 $1,551 $2,234 $132.08 22% $1,551 $4,467 $7,804 $564.46 24% $4,467 $2,234 $3,902 $282.34 24% $2,234 $7,804 $9,694 $1,365.34 32% $7,804 $3,902 $4,847 $682.66 32% $3,902 $9,694 $23,035 $1,970.14 35% $9,694 $4,847 $11,517 $985.06 35% $4,847 $23,035 $6,639.49 37% $23,035 $11,517 $3,319.56 37% $11,517 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later STANDARD Withholding Rate Schedules SEMIMONTHLY Payroll Period (Use these if the box in Step 2 of Form W-4 is NOT checked) Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage Amount (line 1h) is: The of the amount that If the Adjusted Wage Amount (line 1h) is: of the tentative At least- But less than- amount to withhold is: Plus this A B C percentage D the Adjusted Wage exceeds- The tentative amount that the Adjusted At least- But less than- amount to withhold is: Plus this E A B C percentage D Wage exceeds- E Married Filing Jointly Married Filing Jointly $0 $1,154 $0.00 0% $0 $0 $577 $0.00 0% $0 $1,154 $2,071 $0.00 10% $1,154 $577 $1,035 $0.00 10% $577 $2,071 $4,881 $91.70 12% $2,071 $1,035 $2,441 $45.80 12% $1,035 $4,881 $9,102 $428.90 22% $4,881 $2,441 $4,551 $214.52 22% $2,441 $9,102 $16,329 $1,357.52 24% $9,102 $4,551 $8,165 $678.72 24% $4,551 $16,329 $20,425 $3,092.00 32% $16,329 $8,165 $10,213 $1,546.08 32% $8,165 $20,425 $30,060 $4,402.72 35% $20,425 $10,213 $15,030 $2,201.44 35% $10,213 $30,060 $7,774.97 37% $30,060 $15,030 $3,887.39 37% $15,030 Single or Married Filing Separately Single or Married Filing Separately $0 $577 $0.00 0% $0 $0 $289 $0.00 0% $0 $577 $1,035 $0.00 10% $577 $289 $518 $0.00 10% $289 $1,035 $2,441 $45.80 12% $1,035 $518 $1,220 $22.90 12% $518 $2,441 $4,551 $214.52 22% $2,441 $1,220 $2,276 $107.14 22% $1,220 $4,551 $8,165 $678.72 24% $4,551 $2,276 $4,082 $339.46 24% $2,276 $8,165 $10,213 $1,546.08 32% $8,165 $4,082 $5,106 $772.90 32% $4,082 $10,213 $24,666 $2,201.44 35% $10,213 $5,106 $12,333 $1,100.58 35% $5,106 $24,666 $7,259.99 37% $24,666 $12,333 $3,630.03 37% $12,333 Head of Household Head of Household $0 $867 $0.00 0% $0 $867 $1,521 $0.00 10% $867 $0 $433 $433 $0.00 0% $0 $760 $0.00 10% $433 $1,521 $3,360 $65.40 12% $1,521 $760 $1,680 $32.70 12% $760 $3,360 $4,840 $286.08 22% $3,360 $1,680 $2,420 $143.10 22% $1,680 $4,840 $8,454 $611.68 24% $4,840 $2,420 $4,227 $305.90 24% $2,420 $8,454 $10,502 $1,479.04 32% $8,454 $4,227 $5,251 $739.58 32% $4,227 $10,502 $24,954 $2,134.40 35% $10,502 $5,251 $12,477 $1,067.26 35% $5,251 $24,954 $7,192.60 37% $24,954 $12,477 $3,596.36 37% $12,477 Appendix C Federal Income Tax Tables 461 2023 Percentage Method Tables for Manual Payroll Systems With Forms W-4 from 2020 or Later STANDARD Withholding Rate Schedules MONTHLY Payroll Period (Use these if the box in Step 2 of Form W-4 is NOT checked) Form W-4, Step 2, Checkbox, Withholding Rate Schedules (Use these if the box in Step 2 of Form W-4 IS checked) If the Adjusted Wage Amount (line 1h) is: The tentative At least- But less than- amount to withhold is: Plus this A B percentage D of the amount that the Adjusted Wage exceeds- If the Adjusted Wage of the Amount (line 1h) is: The tentative At least- But less than- amount to withhold is: Plus this percentage amount that the Adjusted Wage exceeds- E A B C D E Married Filing Jointly Married Filing Jointly $0 $2,308 $0.00 0% $0 $0 $1,154 $0.00 0% $0 $2,308 $4,142 $0.00 10% $2,308 $1,154 $2,071 $0.00 10% $1,154 $4,142 $9,763 $183.40 12% $4,142 $2,071 $4,881 $91.70 12% $2,071 $9,763 $18,204 $857.92 22% $9,763 $4,881 $9,102 $428.90 22% $4,881 $18,204 $32,658 $2,714.94 24% $18,204 $9,102 $16,329 $1,357.52 24% $9,102 $32,658 $40,850 $6,183.90 32% $32,658 $16,329 $20,425 $3,092.00 32% $16,329 $40,850 $60,121 $60,121 $8,805.34 $15,550.19 35% $40,850 $20,425 $30,060 $4,402.72 35% $20,425 37% $60,121 $30,060 $7,774.97 37% $30,060 Single or Married Filing Separately Single or Married Filing Separately $0 $1,154 $0.00 0% $0 $0 $577 $0.00 0% $0 $1,154 $2,071 $0.00 10% $1,154 $577 $1,035 $0.00 10% $577 $2,071 $4,881 $91.70 12% $2,071 $1,035 $2,441 $45.80 12% $1,035 $4,881 $9,102 $428.90 22% $4,881 $2,441 $4,551 $214.52 22% $2,441 $9,102 $16,329 $1,357.52 24% $9,102 $4,551 $8,165 $678.72 24% $4,551 $16,329 $20,425 $3,092.00 32% $16.329 $8,165 $10,213 $1,546.08 32% $8,165 $20,425 $49,331 $4,402.72 35% $20,425 $10,213 $24,666 $2,201.44 35% $10,213 $49,331 $14,519.82 37% $49,331 $24,666 $7,259.99 37% $24,666 Head of Household Head of Household $0 $1,733 $0.00 0% $0 $0 $867 $0.00 0% $0 $1,733 $3,042 $0.00 10% $1,733 $867 $1,521 $0.00 10% $867 $3,042 $6,721 $130.90 12% $3,042 $1,521 $3,360 $65.40 12% $1,521 $6,721 $9,679 $572.38 22% $6,721 $3,360 $4,840 $286.08 22% $3,360 $9,679 $16,908 $1,223.14 24% $9,679 $4,840 $8,454 $611.68 24% $4,840 $16,908 $21,004 $2,958.10 32% $16,908 $8,454 $10,502 $1,479.04 32% $8,454 $21,004 $49,908 $4,268.82 35% $21,004 $10,502 $24,954 $2,134.40 35% $10,502 $49,908 $14,385.22 37% $49,908 $24,954 $7,192.60 37% $24,954 +