In: Accounting
In all of the following problems, use these tax rates and
taxable wage: OASDI—4.2% on the first $110,100; HI—1.45% on all
taxable wages.
Refer to Instruction 3-1. Dee is paid $1,345 on November 8, 20--.
Dee had cumulative gross earnings, including overtime pay, of
$108,800 prior to this pay.
a) | The amount of OASDI taxes to withhold from Dee's pay is __________. |
b) | The amount of HI taxes to withhold from Dee's pay is __________. |
Total gross pay = 1345 + 108800 = $ 110145
Excess :- 110145 - 110100 = $ 45
The amount of OASDI taxes to withhold from Dee's pay is :- ( 1345 - 45 ) * 4.2 % = $ 54.60
The amount of HI taxes to withhold from Dee's pay is :- $ 1345 * 1.45 % = $ 19.5025