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 $146,100 $ $ $ $ Grath, John, VP Finance 129,120 James, Sally, VP Sales 75,600 Kimmel, Joan, VP Mfg. 57,600 Wie, Pam, VP Personnel 45,600 Grant, Mary, VP Secretary 36,000 b. December 31 Name and Title Annual Salary OASDI Taxable Earnings OASDI Tax HI Taxable Earnings HI Tax Hanks, Timothy, President $146,100 $ $ $ $ Grath, John, VP Finance 129,120 James, Sally, VP Sales 75,600 Kimmel, Joan, VP Mfg. 57,600 Wie, Pam, VP Personnel 45,600 Grant, Mary, VP Secretary 36,000

Answer 1

a. November 15

Name and Title	Annual Salary	OASDI Taxable Earnings	OASDI Tax	HI Taxable Earnings	HI Tax
Hanks, Timothy, President	$146,100	$5,450*	$337.90	$6,088	$88.28
Grath, John, VP Finance	$129,120	$5,380	$333.56	$5,380	$78.01
James, Sally, VP Sales	$75,600	$3,150	$195.30	$3,150	$45.68
Kimmel, Joan, VP Mfg.	$57,600	$2,400	$148.80	$2,400	$34.80
Wie, Pam, VP Personnel	$45,600	$1,900	$117.80	$1,900	$27.55
Grant, Mary, VP Secretary	$36,000	$1,500	$93	$1,500	$21.75

Cumulative earnings as on october 31st is $121,750. Only $5,450 of the $6,087.50 on november 15th is subject to FICA-OASDI.

b. December 31

Name and Title	Annual Salary	OASDI Taxable Earnings	OASDI Tax	HI Taxable Earnings	HI Tax
Hanks, Timothy, President	$146,100	$0	$0	$6,088	$88.28
Grath, John, VP Finance	$129,120	$3,460	$214.52	$5,380	$78.01
James, Sally, VP Sales	$75,600	$3,150	$195.30	$3,150	$45.68
Kimmel, Joan, VP Mfg.	$57,600	$2,400	$148.80	$2,400	$34.80
Wie, Pam, VP Personnel	$45,600	$1,900	$117.80	$1,900	$27.55
Grant, Mary, VP Secretary	$36,000	$1,500	$93	$1,500	$21.75

Cumulative earnings as on december 15th is $123,740. Only $3,460 of the $5,380 paid on december 31st is subject to FICA-OASDI.

(Note: The social security earnings limit is taken as $127,200 as of 2017 as no year is mentioned in the question)