ACCT 1130 Chapter 3 Graded Assignment

Use the following tax rates:

OASDI: 6.2% for employee; 6.2% for employer ($118,500 maximum earnings subject to tax) and HI: 1.45% for both employee and employer (All earnings subject to tax)

During the calendar year, Jane Allison was paid a semimonthly salary of $8,000. Calculate the amount of OASDI and HI taxes to be withheld from her gross pay for the following pay periods:

1. OASDI 9th pay period

2. HI 9th pay period

3. OASDI 15th pay period

4. HI 15th pay period

5. OASDI 23rd pay period

6. HI 23rd pay period

In regard to Jane Allison, what is the total amount of OASDI and HI tax withheld for the entire year (assuming she earned $8,000 for 24 semimonthly pay periods):

7. Total OASDI tax withheld

8. Total HI tax withheld

In regard to Jane Allison, what is the total amount of her employers OASDI and HI tax for the entire year (assuming she earned $8,000 for 24 semimonthly pay periods):

9. Total OASDI tax withheld

10. Total HI tax withheld

The annual salaries paid to the president and vice presidents of Madison Company are given below. These two employees are paid on the last day of the month. Calculate the amount of OASDI and HI taxes to be withheld for the pay periods indicated.

John Hopkins: Annual Salary $147,000 Merialle Gray: Annual Salary $129,000

11. John Hopkins: OASDI March 31

12. John Hopkins: HI March 31

13. John Hopkins: OASDI October 31

14. John Hopkins: HI October 31

15. John Hopkins: OASDI December 31

16. John Hopkins: HI December 31

17. Merialle Gray: OASDI November 30

18. Merialle Gray: HI November 30

19. Merialle Gray: OASDI December 31

20. Merialle Gray: HI December 31

Based on the calculations in 15, 16, 19, and 20 above, determine the following for the December 31 payroll:

21. Total OASDI taxable earnings for the month of December

22. Employers share of OASDI Tax for the month of December

23. Total HI taxable earnings for the month of December

24. Employers share of HI Tax for the month of December

Janna Dance earned $90,000 from her employer, WWW Entertainment. In addition, Janna had net self employment income of $7,400. What is:

25. The amount of OASDI tax withheld for the entire year on the wages paid by WWW Entertainment

26. The amount of HI tax withheld for the entire year from her wages paid by WWW Entertainment

27. Dances OASDI self employment tax for the entire year on her net self employment income

28. Dances HI self employment tax for the entire year on her net self employment income

What if Jannas net self employment income was $30,000 instead of $7400? What is:

29. Dances OASDI self employment tax for the entire year on her net self-employment income

30. Dances HI self employment tax for the entire year on her net self employment income

Elanna James earned $120,000 of self employment income during the year. She did not have any other earnings during the year. Compute the following:

31. The amount of OASDI self employment tax withheld for the entire year from her self employment income.

32. The amount of HI self employment tax withheld for the entire year from her self employment income.