Question

Use the following tax rates, ceiling and maximum taxes:
Employee and Employer OASDI:	6.20%	$132,900	$8,239.80
Employee* and Employer HI:	1.45%	No limit	No maximum
Self-employed OASDI:	12.4%	$132,900	$16,479.60
Self-employed HI:	2.9%	No limit	No maximum

*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.

Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows:

1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate).
2. If the third decimal place is 5 or more, round to the next higher cent.
3. If the third decimal place is less than 5, drop the third decimal place.

Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.

During 20--, Garr was paid a weekly salary of $2,650. The amount of FICA to be withheld from the following payments is: Round your answers to the nearest cent. If your answer is zero, enter "0".

	OASDI		HI
a. For the 50th week	$		$
b. For the 51st week	$		$
c. For the 52nd week	$		$

Answer 1

Answer: OASDI HI a. for soth week 164.30 38.43 b, for the the the slist week 24.80 38.43 Ci for sand week 0 38.43 Workings: OASDI for the soth week 164-30 = 2650 x G-2/ . Cumulative pay till 50th week 132500 = 2650 X SO bi for the Sist week 24.80 -(132900-1325007 6•27. HI tax 38.43 - 2650 *1•457

here is the solution