Question

In 20--, the annual salaries paid each of the officers of Abrew, Inc., follow. The officers are paid semimonthly on the 15th and the last day of the month. Compute the FICA taxes to be with held from each officer's pay on (a)November 15 and (b)December 31.

Round your answers to the nearest cent. If an amount is zero, enter "0". d. November 15 Annual Salary Name and Title OASDI Tax HI Tax OASDI Taxable Earnings X HI Taxable Earnings XS XS х Hanks, Timothy, President $152,400 X х 138,240 х X Grath, John, VP Finance 73,200 х х х х James, Sally, VP Sales х х х Kimmel, Joan, VP Mfg. х 57,600 45,600 х х х х Wie, Pam, VP Personnel х 39,600 Grant, Mary, VP Secretary х х х

Answer 1

			15 november
Name and Title	Annual salary A	semi annually A/24	OASDI Taxable earning	OASDI Tax 6.20%	HI taxable earning	Hi tax 1.45%
Hanks timothy	1,52,400	6350	10700	663.4	6350	92.075
grath john	1,38,240	5760	5760	357.12	5760	83.52
james , sally , vp sales	73,200	3050	3050	189.1	3050	44.225
Kimmel joan	57,600	2400	2400	148.8	2400	34.8
Wie pam VP personal	45,600	1900	1900	117.8	1900	27.55
Grant , mary	39600	1650	1650	102.3	1650	23.925

in 2020 OSADI limit $137,700.

calculate OASDI taxable earning = [taxable wage limit - (semi monthly salary *20 month) ]

[137700-(6350*20) = $10700

			december 31
Name and Title	Annual salary A	semi annually A/24	OASDI Taxable earning	OASDI Tax 6.20%	HI taxable earning	Hi tax 1.45%
Hanks timothy	1,52,400	6350	-		6350	92.075
grath john	1,38,240	5760	5220	323.64	5760	83.52
james , sally , vp sales	73,200	3050	3050	189.1	3050	44.225
Kimmel joan	57,600	2400	2400	148.8	2400	34.8
Wie pam VP personal	45,600	1900	1900	117.8	1900	27.55
Grant , mary	39600	1650	1650	102.3	1650	23.925

year 2020 = [137700 -(5760*23)] = 5220