Question
Ernie Gilmore began working as a part-time waiter on June 1, 2016, at Sporthouse Restaurant. The cash tips of $480 that he received during June
Ernie Gilmore began working as a part-time waiter on June 1, 2016, at Sporthouse Restaurant. The cash tips of $480 that he received during June were reported on Form 4070, which he submitted to his employer on July 1. During July, he was paid wages of $530 by the restaurant. Compute the following amounts; round your answers to the nearest cent.
OASDI | HI | |
a. The amount of FICA taxes that the employer should withhold from Gilmore's wages during July. | $ | $ |
b. The amount of the employer's FICA taxes on Gilmore's wages and tips during July. | $ |
Volpe Corporation has only four employees who are all paid $880 per week. Compute the total FICA taxes that the employer would withhold from the four employees each week and the amount the company would pay as its own liability for the employer's share of the FICA taxes on the weekly wages of the four employees:
Round your taxable wages per paycheck to the nearest cent.
Employees' total OASDI | $ |
Employees' total HI | $ |
Employer's total OASDI | $ |
Employer's total HI | $ |
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