Stephen McPherson (married; 5 federal withholding allowances) earned weekly gross pay of $990. He participates in a flexible spending account, to which he contributes $70 during the period. The city in which he lives and works levies a tax of 2.4% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents, and 1.3% of an employee's taxable pay on nonresidents