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Use the following tax rates, ceiling and maximum taxes: Employee and Employer OASDI: 6.20% $132,900 $8,239.80 Employee* and Employer HI: 1.45% No limit No maximum

Use the following tax rates, ceiling and maximum taxes:
Employee and Employer OASDI: 6.20% $132,900 $8,239.80
Employee* and Employer HI: 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 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:

  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.

On the last weekly pay of the first quarter, Lorenz is paid her current pay of $90 per day for four days worked and one day sick pay (total $450). She is also paid her first-quarter commission of $1,200 in this pay. How much will be deducted for: Round your answers to the nearest cent.

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