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	$37,040		$		$		$		$
Werth, Norm	48,900
Bass, John	40,000
Ruiz, Sam	135,000
Compton, Sue	36,900
Williams, Mary	48,500
Patel, Raymond	106,080
Carson, Abe	56,900
Livinsky, Sarah	37,850
Harper, Mark	51,200
Totals			$		$		$		$

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