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%	$128,400	$7,960.80
Employee* and Employer HI:	1.45%	No limit	No maximum
Self-employed OASDI:	12.4%	$128,400	$15,921.60
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

At Gleeson Brewing Company, office workers are employed for a 40-hour workweek; each individual's salary is quote on either an annual or a monthly basis.

Given on the form below are the current annual and monthly salary rates for five office workers for the week ended December 13, 2019 (50th payday of the year). In addition, with this pay, these employees are paid their sliding-scale annual bonuses. The bonuses are listed on the register.

For each worker, compute the following. Round your answers to the nearest cent.

1. Regular earnings for the weekly payroll ended December 13, 2019.
2. Overtime earnings (if applicable).
3. Total regular, overtime earnings, and bonus.
4. FICA taxable wages for this pay period.
5. FICA taxes to be withheld for this pay period.

GLEESON BREWING COMPANY Weekly Payroll for Period Ending December 13, 2019 FICA Taxable Wages This Pay Period FICA Taxes to Be Withheld Employee Salary Salary Hours Worked Annual Bonus Regular Earnings Overtime Earnings Total Earnings Cumulative Earnings as of Last Pay Period OASDI HI OASDI HI Won, H. $99,840/yr. 40 $35,000 $94,080.00 Park, B. 96,200/yr. 40 25,000 90,650.00 James, R. 7,280/mo. 40 20,000 82,320.00 Oho, J. 5,265/mo. 40 15,000 59,535.00 Mack, K. 3,400/mo. 46 8,000 38,446.38 Totals 103,000 Employer's FICA taxes for week ended December 13, 2019: OASDI HI GLEESON BREWING COMPANY Weekly Payroll for Period Ending December 13, 2019 FICA Taxable Wages This Pay Period FICA Taxes to Be Withheld Employee Salary Salary Hours Worked Annual Bonus Regular Earnings Overtime Earnings Total Earnings Cumulative Earnings as of Last Pay Period OASDI HI OASDI HI Won, H. $99,840/yr. 40 $35,000 $94,080.00 Park, B. 96,200/yr. 40 25,000 90,650.00 James, R. 7,280/mo. 40 20,000 82,320.00 Oho, J. 5,265/mo. 40 15,000 59,535.00 Mack, K. 3,400/mo. 46 8,000 38,446.38 Totals 103,000 Employer's FICA taxes for week ended December 13, 2019: OASDI HI