Question

Example 3-1 Example 3-2 Wallington Company has 100 employees, each eaming $525.25 a week. $32.57 $3,257.00 (6.2% x $525.25) ($32.57 x 100) [6.2% ($525.25 x 100)] $3,256.55 OASDI Amount of OASDI tax withheld from each employee's paycheck each week: Total tax withheld from the 100 employees' wages: Tax on employer: НІ Amount of HI tax withheld from each employee's paycheck each week: Total tax withheld from the 100 employees' wages is: Tax on employer: $7.62 (1.45% x $525.25) $762.00 ($7.62 x 100) [1.45% x ($525.25 x 100)] $761.61 The biweekly taxable wages for the employees of Rite-Shop follow. Compute the FICA taxes for each employee and the employer's FICA taxes Round your answers to the nearest cent.

Answer 1

			FICA taxes
Employee No.	Employee name	Bi-weekly Taxable Wages	OASDI	HI
711	Castro, Manny	$2,000	$124.00 [$2,000 x 6.20%]	$29.00 [$2,000 x1.45%]
512	Corrales, Pat	$964	$59.77 [$964 x 6.20%]	$13.98 [$964 x1.45%]
624	Guitar, Joseph	$1,010	$62.62 [$1,010 x 6.20%]	$14.65 [$1,010 x1.45%]
325	Moore, Connie	$1,123	$69.63 [$1,123 x 6.20%]	$16.28 [$1,123 x1.45%]
422	Morrison, Harry	$2,200	$136.40 [$2,200 x 6.20%]	$31.90 [$2,200 x1.45%]
210	Robertson, Catherin	$1,164	$72.17 [$1,164 x 6.20%]	$16.88 [$1,164 x1.45%]
111	Swarez, Joseph	$1,302	$80.72 [$1,302 x 6.20%]	$18.88 [$1,302 x1.45%]
	Totals	$9,763	$605.31	$141.56

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Employers OASDI	$9,763	$605.31 [$9,763 x 6.20%]
	Total Taxable Wages	Employer's OASDI Tax
Employers HI Tax	$9,763	$141.56 [$9,763 x1.45%]
	Total Taxable Wages	Employer's HI Tax