Question

Julie Whiteweiler made $930 this week. Only social security (fully taxable) and federal income taxes attach to her pay. Whiteweiler contributes $100 each week to her company's 401(k) plan and has $25 put into her health savings account (nonqualified) each week. Her employer matches this $25 each week.

Determine Whiteweiler's take-home pay if she is single and claims 4 allowances (use the wage-bracket method).
Enter deductions beginning with a minus sign (-). Round your calculations and final answers to the nearest cent.
Using the WagesTables for Dec 31, 2016
Gross pay $
HSA contributions
401(k) deductions
OASDI tax
HI tax
FIT
Net pay

Answer 1

Step-by-step explanation:

According to the wage bracket method used for tax withholding in 2016;

For a married individual and a situation whereby the number of withholding allowances claimed is four, no federal taxes have to be withheld since the salary is $930.

Also, the OASDI insurance rate = 6.2%

∴

The wages Table for Dec 31, 2016 is as follows:

Particulars Calculation Total in $

Gross Pay 930.00

Less:

HSA Contributions 50.00

401(k) deductions 100.00

OASDI tax (930 - 100) × 6.2% 51.46

HI tax as given -

FIT -

Net Pay 728.54