Biweekly pay of $2307.69, Married with 4 allowances. In this pay, ONeill is paid his annual bonus of $85,000. This does not affect his group insurance coverage. For withholding purposes, the bonus is considered a supplemental payment and is added to his gross pay and the aggregate is taxed. ONeill changed his SIMPLE contribution this pay to $4,000. In this pay, ONeill has reached the OASDI ceiling. To calculate ONeills OASDI tax, multiply the OASDI ceiling of $132,900 by 6.2 percent and then subtract the OASDI taxes withheld up to this pay.

Taxation-6.2 percent on rst $132,900 of gross earnings paid each worker in the calendar year (maximum OASDI tax of $8,239.80). Pennsylvania,Philadelphia City. OASDI deducted was 4877.48.

Net Paid 42,978.49.