3-5-3
Sallie, OASDI Example 3, has earnings to date of $157,000 and current wages of $6,500. To determine how much of his current earnings will be subject to OASDI, add earnings to date and current wages, $157,000 + $6,500 = $163,500. Does this amount exceed the OASDI cap of $132,900? Yes, it does. You can stop as none of her current earnings and earnings for the remainder of the year will not be subject to OASDI tax.
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Note: Round to the nearest cent.
Serena Williams has earned to date $191,000 and has current earnings of $14,325.
Employee: Williams, Serena | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings to Date: | $191,000.00 | ||||||||||||
Current Earnings: | $14,325.00 | ||||||||||||
OASDI Withholding: | $ |
Earnings to date+Current earnings=191000+14325=$ 205325 | |||||
Earnings to date+Current earnings is more than OASDI cap of $ 132900 | |||||
Hence, OASDI withholding=0 | |||||
3-5-3 Sallie, OASDI Example 3, has earnings to date of $157,000 and current wages of $6,500....
Omar, OASDI Example 1, has earnings to date of $19,880 and current wages of $621.25. To determine how much of his current earnings will be subject to OASDI, add earnings to date and current wages, $19,880 + $621.25 = $20,501.25. Does this amount exceed the OASDI cap of $132,900? No, it does not so all of Omar's current wages will be withheld on at the OASDI rate of 6.2% or $38.5175, rounded to two decimal places ($38.52). ? Tackle It...
Sydney, OASDI Example 2, has earnings to date of $131,500 and current wages of $4,000. To determine how much of her current earnings will be subject to OASDI, add earnings to date and current wages, $131,500 + $4,000 = $135,500. Then subtract from this the OASDI cap, $135,500 - $132,900 = $2,600. This is amount that exceeds the OASDI cap and is not subject to tax. What should be taxed? Begin with current wages and subtract the excess amount, $4,000...
Understanding Hospital Insurance or HI The HI portion of the FICA tax is withheld on total earnings without regard to a wage cap. The HI stands for "hospital insurance" which is actually a trust fund. The HI Trust Fund is used to pay part of inpatient hospital care, skilled nursing care and other services for eligible disabled and elderly people. For employees whose earnings exceed $200,000, employersa must withhold the Additional Medicare Tax as follows. Hospital Example has earnings to...