Lexington is the payroll accountant at All's Fair Gifts. The employees of All's Fair Gifts are paid semimonthly. Asa comes to Lexington on April 7 and requests a pay advance of $1,000, which Asa will pay back in equal parts on the April 14 and May 15 paychecks. Asa is single, with one dependent under 17, is paid $58,000 per year, contributes 3 percent of gross pay to a 401(k), and has $135 per paycheck deducted for a Section 125 plan. Required: Compute the net pay on Asa's April 14 paycheck. The applicable state income tax rate is 5.25 percent. Use the wage-bracket method for manual payroll systems with Forms W-4 from 2020 or later in Appendix C to determine the federal income tax. Assume box 2 is not checked. Note: Round your intermediate calculations and final answer to 2 decimal places. Net pay
Lexington is the payroll accountant at All's Fair Gifts. The employees of All's Fair Gifts are paid semimonthly. Asa comes to Lexington on April 7 and requests a pay advance of $1,000, which Asa will pay back in equal parts on the April 14 and May 15 paychecks. Asa is single, with one dependent under 17, is paid $58,000 per year, contributes 3 percent of gross pay to a 401(k), and has $135 per paycheck deducted for a Section 125 plan. Required: Compute the net pay on Asa's April 14 paycheck. The applicable state income tax rate is 5.25 percent. Use the wage-bracket method for manual payroll systems with Forms W-4 from 2020 or later in Appendix C to determine the federal income tax. Assume box 2 is not checked. Note: Round your intermediate calculations and final answer to 2 decimal places. Net pay
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lexington is the payroll accountant at All's Fair Gifts. The employees of All's Fair Gifts are paid semimonthly. Asa comes to Lexington
on April 7 and requests a pay advance of $1,000, which Asa will pay back in equal parts on the April 14 and May 15 paychecks. Asa is
single, with one dependent under 17, is paid $58,000 per year, contributes 3 percent of gross pay to a 401(k), and has $135 per
paycheck deducted for a Section 125 plan.
Required:
Compute the net pay on Asa's April 14 paycheck. The applicable state income tax rate is 5.25 percent. Use the wage-bracket method
for manual payroll systems with Forms W-4 from 2020 or later in Appendix C to determine the federal income tax. Assume box 2 is not
checked.
Note: Round your intermediate calculations and final answer to 2 decimal places.
Net pay
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