Question

In: Accounting

Use the following tax rates and taxable wage bases: Employees' and Employer's OASDI—6.2% both on $127,200;...

Use the following tax rates and taxable wage bases: Employees' and Employer's OASDI—6.2% both on $127,200; 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.

During 2018, Amanda Hines, president of Dunne, Inc., was paid a semimonthly salary of $7,100. Determine the following amounts. Round your answers to the nearest cent. If your answer is zero, enter "0".

    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 18th pay is   $
$
c. The amount of FICA taxes to withhold from her 24th pay is   $
$

Solutions

Expert Solution

a
The amount of FICA taxes to withhold from her 9th pay is:
OASDI 440.20 =7100*6.2%
HI 102.95 =7100*1.45%
b
Cumulative pay till 17th 120700 =7100*17
The amount of FICA taxes to withhold from her 18th pay is:
OASDI 403.00 =(127200-120700)*6.2%
HI 102.95 =7100*1.45%
c
The amount of FICA taxes to withhold from her 24th pay is :
OASDI 0
HI 102.95 =7100*1.45%

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