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 $18,000 $ $ Werth, Norm 42,000 Bass, John 25,200 Ruiz, Sam 131,400 Compton, Sue 21,600 Williams, Mary 18,000 Patel, Raymond 105,600 Carson, Abe 54,000 Livinsky, Sarah 39,600 Harper, Mark 50,400 Totals Employer's OASDI Tax Employer's HI Tax