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Example 3-2 Wallington Company has 100 employees, each earning $525.25 a week. OASDI Amount of OASDI tax withheld from each employee's paycheck each week: $32.57

Example 3-2

Wallington Company has 100 employees, each earning $525.25 a week.

OASDI
Amount of OASDI tax withheld from each employee's paycheck each week: $32.57 (6.2% $525.25)
Total tax withheld from the 100 employees' wages: $3,257.00 ($32.57 100)
Tax on employer: $3,256.55 [6.2% ($525.25 100)]
HI
Amount of HI tax withheld from each employee's paycheck each week: $7.62 (1.45% $525.25)
Total tax withheld from the 100 employees' wages is: $762.00 ($7.62 100)
Tax on employer: $761.61 [1.45% ($525.25 100)]

Empty Fields Company pays its salaried employees monthly on the last day of each month. The annual salary payroll for 20-- follows. Compute the following for the payroll of December 31; round your answers to the nearest cent.

Employee Annual Salary OASDI Taxable Wages OASDI Tax HI Taxable Wages HI Tax
Utley, Genna $20,400 $ $ $ $
Werth, Norm 43,200
Bass, John 22,800
Ruiz, Sam 133,700
Compton, Sue 20,400
Williams, Mary 22,800
Patel, Raymond 98,400
Carson, Abe 54,000
Livinsky, Sarah 33,600
Harper, Mark 56,400
Totals $ $ $ $

Employer's OASDI Tax $
Employer's HI Tax $

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