eTextbook: Payroll Accounting 2020 Quick Tour Print Search Annotations Accessibility Bookm 5-14B. LO 2, 3, 4 See Example 5-8 on page 5-15 Mary Givens and Peggy Moser are partners engaged in operating The G&M Doll Shop, which has employed the following persons since the beginning of the year: $3,100 per month $30,000 T. Binn(general office worker W. Ashworth (saleswoman) K. Bitner (stock clerk) J. Vern (deliveryman) A Axel (cleaning and maintenance, part-time) $280 $350 per year per week per week per week $240 Givens and Moser are each paid a weekly salary allowance of $1,000. The doll shop is located in a state that requires unemployment compensation contributions of employers of one or more individuals The company is subject to state contributions at a rate of 3.25% for wages not in excess of $10,000. Compute each of the following amounts based upon the 41st weekly payroll period ending October 11: a. Amount of FICA taxes (OASDI and Hl) to be withheld from the earnings of each person. (Refer to Chapter 3.) Search Annotation eTextbook: Payroll Accounting 2020 Quick Tour Print The company is subject to state contributions at a rate of 3.25% for wages not in excess of $10,000. Compute each of the following amounts based upon the 41st weekly payroll period ending October 11: a. Amount of FICA taxes (OASDI and Hl) to be withheld from the earnings of each person. (Refer to Chapter 3.) OASDI HI M. Givens P. Moser T. Binn W. Ashworth K. Bitner J. Vern A. Axel b. Amount of the employer's FICA taxes for the weekly payroll c. Amount of state unemployment contributions for the weekly payroll $ d. Amount of the net FUTA tax on the payroll $ e. Total amount of the employer's payroll taxes for the weekly payroll $ Tax Rates LO 3 The Social Security Act, as amended, imposes a separate tax on employees and employers for old-age, survivors, and disability insurance (OASDI) benefits and for hospital insurance (HI) benefits. The 2019 tax rates for both the employee and the employer portions of the tax follow: Maximum Tax Rate 6.2016 Employee and Employer OASE Employee and player Wage Base $132.900 No limit No momum Taxable Wage Base