James Marbury is the payroll accountant at All's Fair Gifts. The employees of All's Fair Gifts are paid semimonthly. Lauren Stenn comesto him on April 2 and requests a pay advance of $1,000, which Lauren will pay back in equal parts on the April 15 and May 15paychecks. Lauren is single with one dependent under 17 and is paid $50,000 per year. Lauren contributes 3 percent of gross pay to a401(k) and has $125 per paycheck deducted for a Section 125 plan.Required:Compute the net pay on Lauren's April 15 paycheck. The applicable state income tax rate is 5.25 percent. Use the percentage methodfor manual payroll systems with Forms W-4 from 2020 or later in Appendix C to determine the federal income tax. Assume bOx 2is not checked. (Round your intermediate calculations and final answer to 2 decimal places.)ENet pay1,070.e

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Business

Accounting

James Marbury is the payroll accountant at All's Fair Gifts.

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter4: Income Tax Withholding

Section: Chapter Questions

Problem 2QD

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Question

James Marbury is the payroll accountant at All's Fair Gifts. The employees of All's Fair Gifts are paid semimonthly. Lauren Stenn comes
to him on April 2 and requests a pay advance of $1,000, which Lauren will pay back in equal parts on the April 15 and May 15
paychecks. Lauren is single with one dependent under 17 and is paid $50,000 per year. Lauren contributes 3 percent of gross pay to a
401(k) and has $125 per paycheck deducted for a Section 125 plan.
Required:
Compute the net pay on Lauren's April 15 paycheck. The applicable state income tax rate is 5.25 percent. Use the percentage 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. (Round your intermediate calculations and final answer to 2 decimal places.)
ENet pay
1,070.e

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