Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Problem Information Use the following tax rates, ceiling and maximum taxes: Employee and Employer OASDI: 6 . 2 0 % $ 1 4 7 ,

Problem Information
Use the following tax rates, ceiling and maximum taxes:
Employee and Employer OASDI: 6.20%$147,000$9,114.00
Employee* and Employer HI: ,1.45% No limit No maximum
Self-employed OASDI: ,12.4%$147,000$18,228.00
Self-employed HI: ,2.9% No limit No maximum
*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.
Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows:
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 overtin
If the third decimal place is 5 or more, round to the next higher cent.
If the third decimal place is less than 5, drop the third decimal place.
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.
Dee is paid $2,345 on November 8,20-. Dee had cumulative gross earnings, including overtime pay, of $145,700 prior to this pay. Round your answers to the nearest cent.
a. The amount of OASDI taxes to withhold from Dee's pay is $
b. The amount of HI taxes to withhold from Dee's pay is $
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Accounting questions