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1: Phil McGlynn (Married; 3 federal withholding allowances) earned weekly gross

ID: 2332821 • Letter: 1

Question

1: Phil McGlynn (Married; 3 federal withholding allowances) earned weekly gross pay of $790.

Federal income tax withholding = $

2: Gary Williams (single; 2 federal withholding allowance) earned biweekly gross pay of $1,840. He participates in a flexible spending account, to which he contributes $50 during the period.

Federal income tax withholding = $

3: Lila Downing (single; 5 federal withholding allowances) earned monthly gross pay of $5,460. For each period, she makes a 401(k) contribution of 8% of gross pay.

Federal income tax withholding = $

4: Billie Hall (married; 2 federal withholding allowances) earned semimonthly gross pay of $2,250. She participates in a cafeteria plan, to which she contributes $250 during the period.

Federal income tax withholding = $

Explanation / Answer

Assuming the City is San Francisco, CA

1. In case of Phil, Federal Income tax witholding will be $ 33, state income taxes will be $ 12 and social security and medicare deduction will be $ 60, making his take home salary to $ 680 weekly; after considering 3 federal allowances.

2. In case of Gary Williams, federal Income tax withholding will be $ 152 , state income taxes will be $ 65, social security and medicare deduction will be $ 137, flexible spending account deduction $ 50, making take home salary $ 1436 after considering 2 federal allowances.

3.In case of Lila, federal Income tax witholding will be $ 342, state income taxes will be $248, social security and medicare deduction $ 418, deduction of $437 (contribution to 401k, 8% of gross pay), making take home salary $ 4015; considering 5 federal allowances.

4. In case of Billie, federal Income tax witholding will be $125, state income taxes will be $39, social security and medicare will be $ 172, deduction of $250 on cafeteria plan, making take home salary to be $1664; considering 2 federal allowances.

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