Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ken Gorman is a maitre d' at Carmel Dinner Club. On February 1,20 his gross pay was $800 (three days working, one paid vacation day,
Ken Gorman is a maitre d' at Carmel Dinner Club. On February 1,20 his gross pay was $800 (three days working, one paid vacation day, and one paid sick day). He also reported to his employer tips of $900 for the previous month (applicable taxes to be deducted out of this pay). Gorman belongs to the company's 401(k) plan and has 5% of his gross pay ( $800 ) deducted each week (salary reduction). Carmel Dinner Club also provides a matching contribution (\$40) into the plan for Gorman. Compute the following amounts: a. Deduction for OASDI tax b. Deduction for HI tax $$xx Feedthsck T Check My Wark a. Calculate OASDI on total wages and tips (Note: 401K contribution is taxable for OASDI). Use appropriate rate for employee's OASDI. b. Calculate HI on total wages and tips (Note: 401K contribution is taxable for HI). Use appropriate rate for employee's HI
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started