Question

In 20-- the annual salaries paid each of the officers of Abrew, Inc., follow. The officers are paid semimonthly on the 15th and the last day of the month. Compute the FICA taxes to be withheld from each officer's pay on (a) November 15 and (b) December 31.

Round your answers to the nearest cent. If an amount is zero, enter "0".

a.

		November 15
Name and Title	Annual Salary	OASDI Taxable Earnings	OASDI Tax	HI Taxable Earnings	HI Tax
Hanks, Timothy, President	$151,200	$	$	$	$
Grath, John, VP Finance	132,000
James, Sally, VP Sales	69,600
Kimmel, Joan, VP Mfg.	54,000
Wie, Pam, VP Personnel	51,600
Grant, Mary, VP Secretary	49,200

b.

		December 31
Name and Title	Annual Salary	OASDI Taxable Earnings	OASDI Tax	HI Taxable Earnings	HI Tax
Hanks, Timothy, President	$151,200	$	$	$	$
Grath, John, VP Finance	132,000
James, Sally, VP Sales	69,600
Kimmel, Joan, VP Mfg.	54,000
Wie, Pam, VP Personnel	51,600
Grant, Mary, VP Secretary	49,200

Answer 1

Base Year: 2017
OASDI Limit: $ 127,200		15-Nov
Name and Title	Annual	Salary Up to Oct 31 Salary/24*20 months	Semimonthly salary = Salary/24	OASDI Taxable O	OASDI Tax	HI Taxable	HI Tax
	Salary			Earnings	(O*6.2%)	Earnings H	H*1.45%
Hanks, Timothy, President	$ 151,200	$ 126,000	$ 6,300	$ 1,200	$ 74.40	$ 6,300	$ 91.35
				(127200-126000)
Grath, John VP Finance	132,000	$ 110,000	$ 5,500	$ 5,500	$ 341.00	$ 5,500	$ 79.75
James, Sally, VP Sales	69,600	$ 58,000	$ 2,900	$ 2,900	$ 179.80	$ 2,900	$ 42.05
Kimmel, Joan VP MFG	54,000	$ 45,000	$ 2,250	$ 2,250	$ 139.50	$ 2,250	$ 32.63
Wie, Pam, VP Personnel	51,600	$ 43,000	$ 2,150	$ 2,150	$ 133.30	$ 2,150	$ 31.18
Grant, Mary, VP Secretary	49,200	$ 41,000	$ 2,050	$ 2,050	$ 127.10	$ 2,050	$ 29.73
			31-Dec
Name and Title	Annual	OASDI Taxable O	OASDI Tax	HI Taxable	HI Tax
	Salary	Earnings	(O*6.2%)	Earnings H	H*1.45%
Hanks, Timothy, President	$ 151,200	0	0	$ 6,300	91.35
Grath, John VP Finance	132,000	700	$ 43.40	$ 700	$ 10.15
		(127200-(132000-5500))
James, Sally, VP Sales	69,600	2,900	$ 179.80	$ 2,900	$ 42.05
Kimmel, Joan VP MFG	54,000	2,250	$ 139.50	$ 2,250	$ 32.63
Wie, Pam, VP Personnel	51,600	2,150	$ 133.30	$ 2,150	$ 31.18
Grant, Mary, VP Secretary	49,200	2,050	$ 127.10	$ 2,050	$ 29.73