Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employed
Question:
Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employed the following persons since the beginning of the year:
V. Hoffman (general office worker)................. $1,700 per month
A. Drugan (saleswoman) ................................. $15,000 per year
G. Beiter (stock clerk) ...................................... $180 per week
S. Egan (deliveryman) ...................................... $220 per week
B. Lin (cleaning and maintenance, part-time) ... $160 per week
Grady and Monroe are each paid a weekly salary allowance of $950.
The doll shop is located in a state that requires unemployment compensation contributions of employers of one or more individuals. The company is subject to state contributions at a rate of 3.1% for wages not in excess of $8,100. Compute each of the following amounts based upon the 41st weekly payroll period for the week ending October 7, 2016:
a. Amount of FICA taxes (OASDI and HI) to be withheld from the earnings of each person.
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