Julie Whiteweiler made $930 this week. Only social security (fully taxable) and federal income taxes attach to her pay. Julie 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 Julie's take-home pay if she is single and claims 2 allowances (use the wage-bracket method). Round your answers to two decimal places.

Based on 2012 tax tables and rates.

Late reply, but better than nothing. The answer is $663.45 for take-home pay.

How:
Step 1: Calculate FICA (OASDI & HI):
Total wage subjected to FICA is $930. Why? Contributions to 401K is only exempted from Fed. Income Tax Withholding (FIT) not FICA. As for HSA contrib., it is exempted for both FICA and FIT. However, the plan is non-qualified, which means that $25 contributed by employee is taxable for both. The $25 matching from employer for HSA is excluded from income and income taxes.
OASDI RATE 2012: 4.2% of $930; therefore, $39.06
HI RATE 2012: 1.45% of $930; therefore, $13.49
TOTAL FICA TAX: $52.55

STEP 2: Calculate FIT:
Total earnings subjected to FIT is ($930-100)= $830. Why? $100 contributions to 401k is exempted from FIT. HSA contrib. is unqualified.; therefore, contributions from employee is taxable. Using Wage Bracket Method 2012, the FIT is $89.

STEP 3: Getting the Take-Home Pay answer:
($930-100(401k))-25(HSA:Employee)-$52.55(FICA)-89(FIT)=$663.45

To determine Julie's take-home pay using the wage-bracket method, we need to calculate the amounts deducted for social security tax, federal income tax, 401(k) contribution, and health savings account contribution.

1. Calculate social security tax:
The current social security tax rate is 6.2% on the first $142,800 of income. So, multiply Julie's income ($930) by the social security tax rate (0.062) to get the amount deducted for social security tax.
Social security tax deduction = $930 * 0.062 = $57.66

2. Calculate federal income tax:
To calculate federal income tax, we need to know Julie's taxable income after deducting the social security tax and 401(k) contribution. Subtract the social security tax deduction and the 401(k) contribution ($100) from Julie's income.
Taxable income = $930 - $57.66 - $100 = $772.34

Now we need to find the federal income tax amount using the wage-bracket method. Since the tax rates change periodically, we will need the most recent tax brackets to calculate this.

3. Determine federal income tax amount:
Using the given information, such as Julie being single and claiming 2 allowances, and the most recent tax brackets, we can find the applicable tax rate and calculate federal income tax. I'll use the IRS's official tax brackets for 2021 as an example:

Tax brackets for a single individual in 2021:
10% on the first $9,950
12% on the income between $9,951 and $40,525
22% on the income between $40,526 and $86,375
24% on the income between $86,376 and $164,925
32% on the income between $164,926 and $209,425
35% on the income between $209,426 and $523,600
37% on the income over $523,600

Now that we have the brackets, we can calculate the federal income tax using the wage-bracket method. Using the taxable income of $772.34, we determine the tax based on the applicable tax bracket.

For example, $772.34 falls in the 10% tax bracket, so the amount of federal income tax deducted would be:
Tax deduction = $772.34 * 0.10 = $77.23

4. Calculate 401(k) and Health Savings Account deductions:
Julie's 401(k) contribution is $100 per week, and her health savings account contribution is $25 per week. Her employer also matches the $25 for the health savings account. So, the total deductions for 401(k) and health savings accounts are:
401(k) deduction = $100
Health savings account deduction = $25 + $25 (employer contribution) = $50

5. Calculate Julie's take-home pay:
Now we subtract the total deductions (social security tax, federal income tax, 401(k) deduction, and health savings account deduction) from her income to find her take-home pay.
Take-home pay = $930 - $57.66 (social security tax) - $77.23 (federal income tax) - $100 (401(k) deduction) - $50 (health savings account deduction) = $645.11

Therefore, Julie's take-home pay is $645.11 when she is single and claims 2 allowances.