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Compute the net pay for Karen Wilson and Katie Smith. Assume that they are paid a $2,620 salary biweekly, subject to federal income tax (use the wage-bracket method) in Appendix C and FICA taxes, and have no other deductions from their pay. They have a state tax rate of 3 percent. If they choose to participate in the cafeteria plan, the deduction for the pay period is $100; otherwise, there is no deduction for the cafeteria plan. The cafeteria plan qualifies under Section 125. You do not need to complete the number of hours. Additional information for Karen: Box 2 is not checked and the dependents are under 17. Additional information for Katie: Box 2 is checked. (Round your intermediate calculations and final answers to 2 decimal places.)

Name Filing Status Hourly Rate or Period wage No. of Regular Hours No. of Overtime Hours No. of Holiday Hours Commissions Gross Earnings Section 125 Taxable Wages for Federal / State W/H Taxable Wages for FICA Karen Wilsonno cafeteria plan MJ-2 $2,620.00 Karen Wilsoncafeteria plan MJ-2 $2,620.00 Katie Smithno cafeteria plan S-0 $2,620.00 Katie Smithcafeteria plan S-0 $2,620.00 Name Gross Earnings Taxable Wages for Federal / State W/H Taxable Wages for FICA Federal W/H Social Security Tax Medicare W/H Tax State W/H Tax Net Pay Karen Wilsonno cafeteria plan Karen Wilsoncafeteria plan Katie Smithno cafeteria plan Katie Smithcafeteria plan

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