Example $3-2$

Wallington Company has $100$ employees, each earning $$525\mathrm{.}25$ a week.

OASDI

Amount of OASDI tax withheld from each employee's paycheck each week:

$$32\mathrm{.}57(6\mathrm{.}2\%$$$525\mathrm{.}25)$

$$3,257\mathrm{.}00($$$32\mathrm{.}57100)$

$$3,256\mathrm{.}55[6\mathrm{.}2\%($$$525\mathrm{.}25100)]$

Total tax withheld from the $100$ employees' wages:

Tax on employer:

HI

Amount of HI tax withheld from each employee's paycheck each week:

$$7\mathrm{.}62(1\mathrm{.}45\%$$$525\mathrm{.}25)$

$$762\mathrm{.}00($$$7\mathrm{.}62100)$

$$761\mathrm{.}61[1\mathrm{.}45\%($$$525\mathrm{.}25100)]$

Total tax withheld from the $100$ employees' wages $is$:

Tax on employer:

FICA Taxes