1) The taxes imposed under the Social Security Act consist of:

a.two taxes on employees.

b.OASDI and HI taxes.

c.two taxes on employers.

d.taxes on the net earnings of the self-employed.

e.All of these choices are correct.

2) Under the federal income tax withholding law, which of the following is not defined as an employee?

a.Secretary employed by a not-for-profit corporation

b.Payroll clerk hired one week ago

c.Partner who draws compensation for services rendered the partnership

d.Governor of the state of Florida

e.General manager, age 66

3) Problem Information

Use the following tax rates, ceiling and maximum taxes:
Employee and Employer OASDI:	6.20%	$137,700	$8,537.40
Employee* and Employer HI:	1.45%	No limit	No maximum
Self-employed OASDI:	12.4%	$137,700	$17,074.80
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.

Crow earned $585.15 during the week ended March 1, 20--. Prior to payday, Crow had cumulative gross earnings of $4,733.20. Round your answers to the nearest cent.

a. The amount of OASDI taxes to withhold from Crow's pay is	$fill in the blank 1.
b. The amount of HI taxes to withhold from Crow's pay is	$fill in the blank 2.