Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem Information Use the following tax rates, ceiling and maximum taxes: Employee and Employer OASDI: 6.204 $132.000 58,239.00 Employee and Employer Ht 1.45% No limit

image text in transcribed
Problem Information Use the following tax rates, ceiling and maximum taxes: Employee and Employer OASDI: 6.204 $132.000 58,239.00 Employee and Employer Ht 1.45% No limit No maximum Self-employed OASDI 12.4% $132,900 $16,479.60 Self-employed HI: 2.9% No limit No maximum *Employee Hl. Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed Rouncing Rules. Unless Instructed otherwise compute hourly rate and overtime rates as follows: 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 overtime 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, drop the third decimal place Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow Eager, a tipped employee, reported to his employer that he had received 5320 in tips during March on the next payday, April 6, he was paid his regular salary of $400. Round your answers to the nearest cent. a. The amount of OASDI taxes to withhold from Eager's pay is b. The amount of HI taxes to withhold from Eager's pay is

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Students also viewed these Accounting questions