Question

Use the following tax rates and taxable wage bases; employee's 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 0.9 percent on wages in excess of $200,000 was not applicable.

Instruction 3-1 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 percent on wages in excess of $200,000 was not applicable. Refer to Instruction 3-1. At Haddon, Inc., the office workers are employed for a 40-hour workweek and are paid on either an annual, monthly, or hourly basis. All office workers are entitled to overtime pay for all hours worked beyond 40 each workweek at 1.5 times the regular hourly rates. Company records show the following information for the week ended December 26, 20-- Cumulative Taxable Wages as of Last Pay Period Salary Hrs. Worked _(12/19/2) OFFICE $135,200.00 per year 40 $132,600.00 40 Employee King, M. Manera, E. Tate, S. Yee, L. Diaz, R. Zagst, $76,500.00 $45,900.00 48 $6,500.00 per month $3.900.00 per month $12.50 per hour $12.50 per hour $14.50 per hour 44.5 PLANT 48 $27,675.13 $14,778.96 $24,703.02 52 On the form below, calculate for each worker: (a) regular earnings, (b) overtime earnings, (c) total regular and overtime carnings. (d) FICA taxable wages, (e) FICA taxes to be withheld, and (f) net pay for the week ended December 26, 20-- Assume that there are 52 weekly payrolls in 20--. Also, determine the total for each of these six items. Weekly Payroll for Period Ending December 26, 20-- FICA . Taxable Wages and O/T This Pay Period Earnings (d) Total Reg. FICA Taxes Regular Overtime to Be Withheld Earnings Earnings (e) Net Pay (a) (b) (c) OASDI HI (f) OASDI HI Employee King, M. Manera, E.

Answer 1

Amounts are in $

Computation of Regular Wages for week and hourly rate

1. King

Weekly wage = 135,200/52 = 2,600

Hourly rate = 2,600/40 = 65

2. Manera

Weekly wage = 6,500 x 12/52 = 1,500

Hourly rate = 1,500/40 = 37.5

3. Tate

Weekly wage = 3,900 x 12/52 = 900

Hourly rate = 900/40 = 22.5

4. Yee

Weekly wage = 40 x 12.5 = 500

Hourly rate = 12.5

5. Diaz

Weekly wage = 40 x 12.5 = 500

Hourly rate = 12.5

6. Zagst

Weekly wage = 40 x 14.5 = 580

Hourly rate = 14.5

Overtime wages = Hourly rate x (total hours - 40)

For Tate = 8 x 22.5 = 180

For Yee = 4.5 x 12.5 = 56.25

For Diaz = 8 x 12.5 = 100

For Zagst = 12 x 14.5 = 174

Maximum wages for OASDI contribution = 132,900/52 = 2,555.77 or 2,556

Employee Regular overtime Total Cornings earnings FICA Wages ASD HI IFICA Tex Net 6.22 but GASPIL Hi poy 30 31 cernings King 2,600 Manera 1, Soo 0 Tate 900 180 2,600 3,556/2,600 158.47 377 2,403.83 1,500 1,500 1,500 93 21.75 1385.25 1,080 1080 1,080 66.96 15.66997-38 556.25 556.25 556.25 34.498.07 573.69 600 Goo 6oo 32.2 8.7 1554.1 754 754 754 46.75 10.93 696.321 Yee 500 56.25 Diez 500 174 Zagst 580 Total 6,580 Scanned with Camscanner $10.25 7090.25 7046.25 7090.251436-87102896550.57

Employer FICA Taxes

OASDI = 436.87

HI = 102.81