Example 3-2

Wallington Company has 100 employees, each earning $525.25 a week. Year 2021

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)]

The biweekly taxable wages for the employees of Rite-Shop follow.

Compute the FICA taxes for each employee and the employer's FICA taxes. Round all computations to the nearest cent.

					FICA Taxes
Employee No.	Employee Name	Biweekly Taxable Wages			OASDI		HI
711	Castro, Manny		$1,000.00
512	Corrales, Pat		968.00
624	Guitar, Joseph		1,004.00
325	Moore, Connie		1,046.40
422	Morrison, Harry		1,200.00
210	Robertson, Catherine		1,044.80
111	Swarez, Joseph		1,122.00
	Totals

Employer's OASDI
	Total Taxable Wages		Employer's OASDI Tax

Employer's HI Tax
	Total Taxable Wages		Employer's HI Tax