Note: In this chapter and in all succeeding work throughout the course, unless instructed otherwise, use the following rates, ceiling, and maximum taxes.

Employee and Employer OASDI:	6.20%	$118,500	$7,347
Employee* and Employer HI:	1.45%	No limit	No maximum
Self-employed OASDI:	12.4%	$118,500	$14,694
Self-employed HI:	2.9%	No limit	No maximum

1.	Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the over-time rate).
2.	If the third decimal place is 5 or more, round to the next higher cent.
3.	If the third decimal place is less than 5, simply drop the third decimal place.
	Examples:	Monthly rate $1,827 Weekly rate ($1,827 12)/52 = $421.615 rounded to $421.62 Hourly rate $421.62/40 = $10.540 rounded to $10.54 O.T. rate $10.54 1.5 = $15.81

Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.

*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.

Example 3-1

During 2017, Rachael Parkins, president of Mathieson Company, was paid a semimonthly salary of $7,300. Compute the amount of FICA taxes that should be withheld from her. If an amount is zero, enter "0".

	OASDI	HI
a. 9th paycheck	$	$
b. 17th paycheck	$	$
c. 24th paycheck	$	$
d. If Rachael Parkin's year-to-date earnings as of her 24th paycheck are $175,200, and her year-end bonus is $100,000, how much is the additional 0.9% HI tax withheld?		$