Question

Section B—DIRECTIONS: Complete Problems 1 and 2 by recording your answers in the spaces provided. Use the following tax rates and taxable wage bases:

Employees’ and Employer’s OASDI—6.2% both on $132,900; HI—1.45% for employees and employers on the total wages paid. Employees’ Supplemental HI of 0.9% on wages in excess of $200,000 was not applicable in these problems.   

1. During 20--, Amanda Hines, president of Dunne, Inc., was paid a semimonthly salary of $7,100. Determine the following amounts. OASDI HI   

(a) The amount of FICA taxes to withhold from her 9th pay is......................................................................................... $................................... $       

(b) The amount of FICA taxes to withhold from her 19th pay is....................................................................................... $.....................................$                                                                                                                                                                                                                      

(c) The amount of FICA taxes to withhold from her 24th pay is....................................................................................... $......................................$                                                                                                                                                                                                                      

Answer 1

		Cummulative Earning before Present Salary	Salary Received	OASDI	HI
a)	9th Pay Check	$     56,800.00	$ 7,100.00	$                            440.20	$           102.95
		=7100*8		=7100*6.2%	=7100*1.45%
b)	19th Pay Check	$ 127,800.00	$ 7,100.00	$                            316.20	$           102.95
		=7100*18		=(132900-127800)*6.2%	=7100*1.45%
c)	24th Pay Check	$ 170,400.00	$ 7,100.00	$                                     -	$           102.95
		=7100*24			=7100*1.45%