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Let's work through the net pay calculations for both Briar Khan and Hollis Hart based on the provided information. Here’s a breakdown of how each component will be calculated:

### Given Data:
- **Salary (biweekly)**: $2,500
- **Federal Income Tax**: Use the wage-bracket method in Appendix C.
- **State Income Tax**: 3% of taxable wages.
- **FICA Deductions**:
  - **Social Security Tax**: 6.2% of taxable wages (up to FICA limit if applicable).
  - **Medicare Tax**: 1.45% of taxable wages.
- **Cafeteria Plan Deduction**: $100 (only applies if chosen).

### Step-by-Step Solution

1. **Gross Earnings**:
   - Gross earnings for all cases = $2,500.00 (as shown in the table).

2. **Cafeteria Plan Deduction**:
   - For cases with the cafeteria plan: Deduct $100.
   - For cases without the cafeteria plan: Deduction = $0.

   This affects **Taxable Wages** as follows:
   - **Without cafeteria plan**: Taxable Wages = $2,500.
   - **With cafeteria plan**: Taxable Wages = $2,400.

3. **Social Security and Medicare Tax Calculations**:
   - **Social Security Tax** = 6.2% of Taxable Wages for FICA.
   - **Medicare Tax** = 1.45% of Taxable Wages for FICA.

   Calculations:
   - For **$2,500 taxable wage** (no cafeteria plan):
     - Social Security = $2,500 * 6.2% = $155.00
     - Medicare = $2,500 * 1.45% = $36.25
   - For **$2,400 taxable wage** (with cafeteria plan):
     - Social Security = $2,400 * 6.2% = $148.80
     - Medicare = $2,400 * 1.45% = $34.80

4. **State Withholding Tax (3% of Taxable Wages for Federal/State W/H)**:
   - For **$2,500** taxable wage: 3% of $2,500 = $75.00
   - For **$2,400** taxable wage: 3% of $2,400 = $72.00

5. **Federal Withholding Tax**:
   - The table doesn’t provide explicit federal withholding amounts. We would need to use Appendix C (the wage-bracket method) to find the exact withholding. For now, I'll proceed assuming we have the necessary values.

6. **Net Pay Calculation**:
   Net Pay = Gross Earnings - (Social Security Tax + Medicare Tax + State Withholding Tax + Federal W/H Tax).

Once the federal withholding tax values are added, we can compute the final net pay values.

Would you like me to calculate net pay without the federal withholding values for now, or do you have the data from Appendix C for further completion? 

### Further Questions to Consider:
1. What is the specific federal withholding amount for each scenario as per Appendix C?
2. Are there any FICA limits we need to consider for Social Security contributions?
3. How does opting into the cafeteria plan affect Briar Khan and Hollis Hart’s net pay over an extended period?
4. What are the implications of Section 125 for the cafeteria plan deductions on taxable wages?
5. How would different filing statuses or dependent configurations impact these calculations?

#### Tip:
Always verify intermediate calculations to ensure accuracy, especially when rounding is required for financial calculations.

Compute the net pay for Briar Khan and Hollis Hart. Assume they are paid a $2,500 salary biweekly, subject to federal income tax (use the wage-bracket method), state income tax rate of 3%, and FICA taxes. Cafeteria plan deduction applies if chosen. Calculate all deductions and final net pay, rounding intermediate values to two decimal places.

Detailed solution for calculating the net pay of Briar Khan and Hollis Hart, including biweekly salary, federal and state taxes, FICA deductions, and cafeteria plan impact. Includes formulas for Social Security, Medicare, and state withholding taxes, as well as final net pay computation.

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