Employee and Employer OASDI: 6.20% $137,700 $8,537.40 Employee and Employer HI: 1.45% no limit no maximum Self-employed OASDI: 12.40% $137,700 $17,074.80 Self-employed HI: 2.90% no limit no maximum

The names of the employees of Matson Office Susems and their regular salaries are shown in the following payroll register. Note that Wayne and Young are paid monthly on the last payday, while all others are paid weekly. In addition to the regular salaries, the company pays an annual bonus (Suppl) based on the amount of earnings for the year.For the current year,the bonus amounts to 8% of the annual salary paid to each employee.The bonus is to be paid along with the regular salaries on December 28, and the amount of the regular salary will be shown separately on each employees earnings statement.Assume that allemployees received their regular salary during the entire year.

Directions: Prepare the payroll for the payperiod ending Decemer 28, showing the following for each employee:

** Use the wage-bracket method to withhold federal income tax from the regular salaries.

** Withhold a flat 25% on the annual bonus.

** Total salaries and bonuses are subject to a 2% state income tax and a 1% city income tax.

December 28, 20xx FOR PERIOD ENDING DECEMBER 28, 20XX Earnings DEDUCTIONS NET PAY (c)FICA EMPLOYEE NAME MARITAL STATUS # OF ALLOWANCES REGULAR (a) Supplemental (b)Totals OASDI HI (d)FIT (e)SIT (f)CIT Wayne, Bret MFJ N/A 3,000.00 Young, Gina MFJ N/A 2,500.00 Course, Rudy S N/A 810.00 Dickinson, Emile MFJ N/A 715.00 Woodrow Walt MFJ N/A 695.00 Noblet Jim S N/A 525.00 Ono, Joan MFJ N/A 800.00 Jones, Carrie S N/A 645.00 Totals **Monthly Compute the eployer's FICA taxes for the pay period ending December 28. OASDI TAXES HI TAXES OASDItaxable Earnings HI taxable Earnings OASDI taxes HI taxes