Question
The HI portion of the FICA tax is withheld on total earnings without regard to a wage cap. The HI stands for hospital insurance which
The HI portion of the FICA tax is withheld on total earnings without regard to a wage cap. The HI stands for "hospital insurance" which is actually a trust fund. The HI Trust Fund is used to pay part of inpatient hospital care, skilled nursing care and other services for eligible disabled and elderly people.
For employees whose earnings exceed $200,000, employers must withhold the Additional Medicare Tax as follows.
Hospital Example has earnings to date of $192,750 and current earnings of $32,125.
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Withholding on behalf of Hospital Example Standard HI withholding ($32,125 * 1.45%) $465.81 Additional HI Withholding ([{$192,750 + $32,125} - $200,000] * 0.9%) $223.88
Compute the withholding for the following employees whose filing status is single.
Note: Round each to the nearest cent.
Michelle's 2020 HI withholding, for this pay period, is: =$ And her supplemental withholding, for this pay period, is: =$ |
- Julie's current earnings are $3,850.00. Year to date she has earned $70,000.
Julie's 2020 HI withholding, for this pay period, is: =$
- Scottie's current earnings are $7,260.00. Year to date she has earned $132,000.
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Scottie's 2020 HI withholding, for this pay period, is: =$
- Michelle's current earnings are $14,400.00. Year to date she has earned $192,000.
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Michelle's 2020 HI withholding, for this pay period, is: =$ And her supplemental withholding, for this pay period, is: =$
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