Example 3-1

Ken Gorman is a maitre d' at Carmel Dinner Club. On February 1, 20-- his gross pay was $860 (three days working, one paid vacation day, and one paid sick day). He also reported to his employer tips of $1,060 for the previous month (applicable taxes to be deducted out of this pay). Gorman belongs to the company's 401(k) plan and has 5% of his gross pay ($860) deducted each week (salary reduction). Carmel Dinner Club also provides a matching contribution ($43) into the plan for Gorman. Compute the following amounts:

a. Deduction for OASDI tax	$fill in the blank 1
b. Deduction for HI tax	$fill in the blank 2