Example 3-2

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

OASDI
Amount of OASDI tax withheld from each employees 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 employees 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:

If required, round your answers to nearest cent and use the rounded answers in subsequent computations. Round your final answers to the nearest cent.

Employee	Annual Salary	OASDI Taxable Wages	OASDI Tax	HI Tax
Utley, Genna	$21600	$	$	$
Werth, Norm	44400
Bass, John	19200
Ruiz, Sam	121000
Compton, Sue	16800
Williams, Mary	16800
Patel, Raymond	98400
Carson, Abe	58800
Livinsky, Sarah	34800
Harper, Mark	51600
Totals		$	$	$

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