Required: Compute the net pay for Eve Khan and Marn Hart. Assume that they are paid a $2,710 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 Eve: Box 2 is not checked, and the dependents are under 17. Note: Round your Intermediate calculations and final answers to 2 decimal places. Name Eve Khan-no cafeteria plan Eve Khan-cafeteria plan Marn Hart-no cafeteria plan Marn Hart-cafeteria plan Name Eve Khan-no cafeteria plan Eve Khan-cafeteria plan Marn Hart-no cafeteria plan Marn Hart-cafeteria plan Filing Status MJ MJ S S Dependents $ 2,710.00 $ 2,710.00 $ 2.710.00 $ $ 2,710.00 $ 2<17 2<17 Taxable Wages Gross Earnings for Federal or State W/H 0 0 Period wage $ 2,710.00 $ 2,710.00 $ 2,710.00 $ 2,710.00 Taxable Wages for FICA 2.710.00 $ 2,710.00 2,610.00 $ 2,610.00 2,710.00 $ 2,710.00 2.610.00 $ 2,610.00 Number of Regular Hours Federal W/H Number of Overtime Hours Social Security Tax $ $ $ $ Number of Holiday Hours Medicare W/H Tax 168.02 $ 161.82 $ 168.02 $ 161.82 $ Commissions State W/H Tax 39.30 $ 37.85 $ 39.30 $ 37.85 $ 81.30 78.30 81.30 78.30 Gross Earnings S S S S Section 125 2,710.00 $ 2,710.00 $ 2,710.00 $ 2,710.00 $ Net Pay Taxable Wages for Federal or State W/H Taxable Wages for FICA 0.00 $ 2,710.00 $ 2,710.00 100.00 $ 2,610.00 $ 2,610.00 0.00 $2,710.00 $ 2,710.00 100.00 $ 2,610.00 $ 2,610.00
Required: Compute the net pay for Eve Khan and Marn Hart. Assume that they are paid a $2,710 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 Eve: Box 2 is not checked, and the dependents are under 17. Note: Round your Intermediate calculations and final answers to 2 decimal places. Name Eve Khan-no cafeteria plan Eve Khan-cafeteria plan Marn Hart-no cafeteria plan Marn Hart-cafeteria plan Name Eve Khan-no cafeteria plan Eve Khan-cafeteria plan Marn Hart-no cafeteria plan Marn Hart-cafeteria plan Filing Status MJ MJ S S Dependents $ 2,710.00 $ 2,710.00 $ 2.710.00 $ $ 2,710.00 $ 2<17 2<17 Taxable Wages Gross Earnings for Federal or State W/H 0 0 Period wage $ 2,710.00 $ 2,710.00 $ 2,710.00 $ 2,710.00 Taxable Wages for FICA 2.710.00 $ 2,710.00 2,610.00 $ 2,610.00 2,710.00 $ 2,710.00 2.610.00 $ 2,610.00 Number of Regular Hours Federal W/H Number of Overtime Hours Social Security Tax $ $ $ $ Number of Holiday Hours Medicare W/H Tax 168.02 $ 161.82 $ 168.02 $ 161.82 $ Commissions State W/H Tax 39.30 $ 37.85 $ 39.30 $ 37.85 $ 81.30 78.30 81.30 78.30 Gross Earnings S S S S Section 125 2,710.00 $ 2,710.00 $ 2,710.00 $ 2,710.00 $ Net Pay Taxable Wages for Federal or State W/H Taxable Wages for FICA 0.00 $ 2,710.00 $ 2,710.00 100.00 $ 2,610.00 $ 2,610.00 0.00 $2,710.00 $ 2,710.00 100.00 $ 2,610.00 $ 2,610.00
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 73TA
Related questions
Question
Transcribed Image Text:Required:
Compute the net pay for Eve Khan and Marn Hart. Assume that they are paid a $2.710 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 Eve: Box 2 is not checked, and the dependents are under 17.
Note: Round your Intermediate calculations and final answers to 2 decimal places.
Name
Eve Khan-no cafeteria plan
Eve Khan-cafeteria plan
Marn Hart-no cafeteria plan
Marn Hart-cafeteria plan
Name
Eve Khan-no cafeteria plan
Eve Khan-cafeteria plan
Marn Hart-no cafeteria plan
Mar Hart-cafeteria plan
Filing Status
Gross Earnings
MJ
MJ
S
S
$
$
$
Dependents
$ 2.710.00 $
2,710.00
2,710.00 $
2,710.00 $
2<17
2<17
0
0
Taxable Wages
for Federal or
State W/H
Period wage
$ 2,710.00
$ 2,710.00
$ 2,710.00
$ 2,710.00
Taxable
Wages for
FICA
2,710.00 $ 2,710.00
2,610.00 $ 2,610.00
2,710.00 $2,710.00
2,610.00 $ 2,610.00
Number of
Regular
Hours
Federal W/H
Number of
Overtime Hours
Social Security
Tax
$
$
$
$
Number of
Holiday Hours
Medicare W/H
Tax
168.02 $
161.82 $
168.02 $
161.82 $
Commissions
State W/H Tax
39.30 S
37.85 $
39.30 $
37.85 S
81.30
78.30
81.30
78.30
Gross Earnings
S
S
$
S
Section 125
2,710.00 $
2,710.00 $
2,710.00 $
2,710.00 $
Net Pay
Taxable
Wages for
Federal or
State W/H
Taxable
Wages for
FICA
0.00 $ 2,710.00 $ 2,710.00
100.00 $ 2,610.00 $ 2,610.00
0.00 $ 2,710.00
100.00 $ 2,610.00
$ 2,710.00
$ 2,610.00
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