For all assignments in this unit, assume a time-and-a-half overtime rate for work above forty hours, an OASDI FICA rate of 6.2% with ceiling (base) of $118,500, and a Medicare FICA rate of 1.45% with no ceiling. Remember, FUTA ceiling is $7,000 and rate is 0.6% (.006). SUTA ceiling is $9,000 and rate is 5.4% (.054).

ASSIGNMENT 25

Problem 25-1: Identify payroll tax forms.

Indicate which payroll tax form (number of form) should be used for each situation listed.

	Description of Form	Form
a.	Deposit of accumulated federal payroll deductions and employers FICA contributions
b.	Annual report of employers unemployment compensation taxes
c.	Deposit of federal unemployment compensation taxes in authorized commercial bank
d.	Summary of information found on Wage and Tax Statements
e.	Report containing an employees payroll data for a calendar year
f.	Information on employee tax withholdings and employer FICA Social Security OASDI and Medicare HI contributions for a quarter

Problem 25-2: Compute FICA OASDI and HI deductions.

Using the information provided for Nathan and Company, compute the following for each employee:

1. For each employee, for the week ending December 31, compute (1) amount subject to FICA OASDI tax (assuming ceiling of $118,500), (2) amount subject to FICA HI tax, (3) OASDI tax deduction for week, and (4) HI tax deduction for week. OASDI rate is 6.2% and HI rate is 1.45%.
2. Compute (1) total FICA taxes owed for week and (2) employers share of FICA taxes for week (by deducting employees deductions for week from total owed).
3. Compute (1) FICA OASDI pay through December 31, (2) FICA HI pay through December 31, (3) employers FICA OASDI tax from 1/1 through 12/31, and (4) employers FICA HI tax from 1/1 through 12/31.

Table 1
Name	Year-to-Date Gross Pay as of Week Ending December 24	Gross Pay for Week Ending December 31	Weekly Gross Pay Subject to FICA OASDI Tax	Weekly Gross Pay Subject to FICA HI Tax	Employees OASDI Tax Deduction for Week	Employees HI Tax Deduction for Week
Alexander, R.	$114,175.80	$ 560.40
Kawanishi, K.	$117,395.60	835.80
Knickel, B.	117,920.40	934.60
McCoy, D.	119,218.30	820.00
Ueoka, T.	117,437.90	1,120.00
Employees Totals for Week

Problem 25-2 (continued)

Table 2
	Weekly Gross Pay Subject to FICA OASDI Tax from 1/1 thru 12/31	Weekly Gross Pay Subject to FICA HI Tax from 1/1 thru 12/31
Total Pay Subject to FICA OASDI and HI Tax from 1/1 thru 12/31 (from Table 1 above)	$3,037.90	$4,270.80
Times the total OASDI (12.4%) and HI (2.9%) Tax Rate	X .124	X .029
Pay Subject to FICA OASDI Tax from 1/1 thru 12/31
Less: Employees FICA tax deductions for entire year (from Table 1 above)
Employers share of FICA tax deductions for entire year

Table 3
Name	Pay Subject to FICA OASDI Tax from 1/1 thru 12/31	Pay Subject to FICA HI Tax from 1/1 thru 12/31	Employees FICA OASDI Tax (6.2%) 1/1 thru 12/31	Employees FICA HI Tax (1.45%) 1/1 thru 12/31
Alexander, R.
Kawanishi, K.
Knickel, B.
McCoy, D.
Ueoka, T.
Total wages subject to FICA taxes for the year

*Sometimes these two grand totals are different from the total of the individual payroll amounts for each pay period because of rounding.

Table 4
	Pay Subject to FICA OASDI Tax from 1/1 thru 12/31	Pay Subject to FICA HI Tax from 1/1 thru 12/31
Total Pay Subject to FICA OASDI and HI Tax from 1/1 thru 12/31 (from Table 3 above)	$588,467.60	$591,218.80
Times the total OASDI (12.4%) and HI (2.9%) Tax Rate	X .124	X .029
Pay Subject to FICA OASDI Tax from 1/1 thru 12/31
Less: Employees FICA tax deductions for entire year (from Table 3 above)
Employers share of FICA tax deductions for entire year