Psb 3-6 Calculate Federal (Wage-Bracket Method), State, and Local Income Tax Withholding s the Refer to the Federal Tax Tables in Appendix A. federal and state income tax withholding) and the local withholding tax. He the state withholding tax (assuming a state tax rate of 5% of taxable pay, with taxable pay being the same for For each employee listed, use the wage bracket method to calculate federal withholding tax. Then calculate both 1. Jay Monroe (single; two federal withholding allowances) earned weekly gross pay of $1,145. For each period, he makes a 401(k) retirement plan contribution of 12% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 2% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents and 1.7% of an employee's taxable pay on nonresidents. 2. Gus Damon (married; nine federal withholding allowances) earned weekly gross pay of $1,200. He a tax of 3% of an employee's taxable pay (which is the same for federal and local income tax withholding) on contributed $125 to a flexible spending account during the period. The city in which he lives and works levies residents and 0.4% of an employee's taxable pay on nonresidents. 3. Kenneth Riley (single; no federal withholding allowances) earned weekly gross pay of $1,000. For each works levies a tax of 1.7% of an employee's taxable pay (which is the same for federal and local income tax period, he makes a 403(b) retirement plan contribution of 5% of gross pay. The city in which he lives and withholding) on both residents and nonresidents. 4. Ross McMichael (married; two federal withholding allowances) earned weekly gross pay of $970. He paid $60 to a cafeteria plan during the period. The city in which he works levies a tax of $8/week on employees who work within city limits. TOR $2,300 D 1 1. $1,145.00 E 2 3 Weekly Gross Pay 401(k) Contribution Taxable Pay for Federal Income Tax Withholding IFederal Income Tax Withholding State Income Tax Withholding Local Income Tax Withholding 4 5 6 7 8 2. $1,200.00 10 11 Weekly Gross Pay Flexible Spending Account Taxable Pay for Federal Income Tax Withholding Federal Income Tax Withholding State Income Tax Withholding Local Income Tax Withholding 12 13 14 15 3. $1,000.00 16 17 18 Weekly Gross Pay 403(b) Contribution Taxable Pay for Federal Income Tax Withholding Federal Income Tax Withholding State Income Tax Withholding Local Income Tax Withholding 19 20 21 22 4. $970.00 23 24 25 Weekly Gross Pay Cafeteria Plan Taxable Pay for Federal Income Tax Withholding Federal Income Tax Withholding State Income Tax Withholding Local Income Tax Withholding 26 27 28 29 30 31