PSc 3-6: Calculate Federal (Wage-Bracket Method), State, and Local Income Tax Withholding For each employee listed, use the wage—bracket method to calculate federal income tax withholding. Thencalculate both the state income tax withholding (assuming a state tax rate of 5% of taxable pay. with taxable paybeing the same for federal and state income tax withholding} and the local income tax withholding. 1. Irving Black (Single; zero federal withholding allowances] earned weekly gross pay of $995. For eachperiod. he makes a 401(k) retirement plan contribution of 8% of gross pay. The city in which he works (helives elsewhere) levies a tax of 1.6% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents and 0.7% of an employee's taxable pay on nonresidents.William Stefano (Married; six federal withholding allowances} earned weekly gross pay of $1,125. He participates in a ?exible spending account, to which he contributes $100 during the period. The city inwhich he lives and works levies a tax of 2% of an employee's taxable pay (which is the same for federaland local income tax withholding) on residents and 1.4% of an employee's taxable pay on nonresidents.Brad Haley (Married; three federal withholding allowances) earned weekly gross pay of $1,150. For eachperiod. he makes a 403[b) retirement plan contribution of 8% of gross pay. The city in which he lives andworks levies a tax of 1.6% of an employee's taxable pay (which is the same for federal and local income tax withholding) on both residents and nonresidents.Zane Smith (Single; two federal withholding allowances) earned weekly gross pay of $1,025. He participates in a cafeteria plan. to which he pays $75 during the period. The city in which he works levies atax of $15/week on employees who work within city limits.