To calculate net pay:

Gross Pay: $130,000 / 26 = $5,000.00.

401(k) Deferral: 10% of $5,000 = $500.00.

FICA Taxes: SS ($5,000 x 6.2% = $310) + Medicare ($5,000 x 1.45% = $72.50). Total = $382.50.

FIT Taxable Wages: $5,000 - $500 = $4,500.00.

FIT Withholding: Using 2025 tables for MFJ (Step 2 unchecked) on $4,500, the estimated FIT is approx. $383.18 .

Net Pay: $5,000 (Gross) - $500 (401k) - $382.50 (FICA) - $383.18 (FIT) = $3,734.32 . Correctly applying the 2025 Form W-4 logic—which removed allowances and introduced a more complex multi-step calculation—is essential for accurate withholding in modern payroll systems.