1. Use the following tax rates, ceiling and maximum taxes:

Employee and Employer OASDI: 6.2% $132,900 $8,239.8

Employee* and Employer HI: 1.45% No limit No maximum

Self-employed OASDI: 12.4% $132,900 $16,479.6

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 overtime rate).

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.

1 Question: Beginning with the first pay of the year, Carson will make $2,700 each week. In which numbered pay of the year will Carson hit the OASDI taxable limit?

1 Answer: 46th pay, 47th pay, 48th pay, 49th pay or 50th pay. Explain why the answer is correct

2. Use the following tax rates, ceiling and maximum taxes:

Employee and Employer OASDI: 6.2% $132,900 $8,239.8

Employee* and Employer HI: 1.45% No limit No maximum

Self-employed OASDI: 12.4% $132,900 $16,479.6

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 overtime rate).

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.

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.

2 Question:What are the OASDI & HI tax? Explain why the answer is correct

3.Use the following tax rates, ceiling and maximum taxes:

Employee and Employer OASDI: 6.2% $132,900 $8,239.8

Employee* and Employer HI: 1.5% No limit No maximum

Self-employed OASDI: 12.4% $132,900 $16,479.6

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 overtime rate).

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.

Eager, a tipped employee, reported to his employer that he had received $320 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.

3 Questions: (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......

Explain why the answer is correct

4 Question: The FICA tax rates for the self-employed are:

4 Answer below

a.6.2% (OASDI) and 2.9% (HI).

b.10.0% (OASDI) and 1.0% (HI).

c.6.2% (OASDI) and 1.45% (HI).

d.12.4% (OASDI) and 1.45% (HI).

or e.None of these choices are correct.

Explain why the answer is correct

5.Use the following tax rates, ceiling and maximum taxes:

Employee and Employer OASDI: 6.2% $132,900 $8,239.8

Employee* and Employer HI: 1.45% No limit No maximum

Self-employed OASDI: 12.4% $132,900 $16,479.6

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 overtime rate).

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.

In this pay, Moss Company deducted OASDI taxes of $5,276.24 and HI taxes of $1,233.95 from the $85,100.90 of taxable wages paid. What is Moss Company's portion of the social security taxes for: Round your answers to the nearest cent.

5 Question: What are the OASDI & HI tax?

Explain why the answer is correct

6 Question:Which of the following deposit requirements pertains to a non-agricultural employer who has employer FICA taxes and withheld employee FICA taxes and income taxes of $125,000 at the end of payday on Friday, August 14, 20--?

6 Answer below

a.No deposit is required until Tuesday, August 18.

b.The undeposited taxes should be carried over to the end of September.

c.The taxes must be deposited by the close of the next banking day.

d.The taxes must be deposited on or before August 31.

or e. None of these choices are correct.

Explain why the answer is correct

7 Question: To be designated a semiweekly depositor, how much in employment taxes would an employer have reported for the four quarters in the look-back period?

7 Answer below

a. More than $2,500.

b. Less than $50,000.

c. More than $100,000.

d. More than $50,000.

or e. None of these choices are correct.

Explain why the answer is correct

8 Question: Which of the following payments are not taxable for FICA?

8 Answer below

a. Retroactive wage increase.

b. Back-pay awards.

c. Wage supplements to cover difference between employees' salaries and their military pay.

d. Difference between employees' regular wages and the amount received for jury duty.

or e. Severance pay.

Explain why the answer is correct

9.Use the following tax rates, ceiling and maximum taxes:

Employee and Employer OASDI: 6.2% $132,900 $8,239.8

Employee* and Employer HI: 1.45% No limit No maximum

Self-employed OASDI: 12.4% $132,900 $16,479.6

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 overtime rate).

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.

9 Question: Fess receives wages totaling $75,700 and has net earnings from self-employment amounting to $61,300. In determining her taxable self-employment income for the OASDI tax, how much of her net self-employment earnings must Fess count?

Explain why the answer is correct

10 Question: The OASDI taxable wage base is correctly defined as:

10 Answer below

a.all amounts earned by an employee during a calendar year.

b.all amounts either earned by, or paid to, an employee during a calendar year.

c.all amounts paid an employee during a calendar year.

d.the maximum amount of wages during a calendar year that is subject to the OASDI tax.

or e. None of these choices are correct.

Explain why the answer is correct

11 Question: Which of the following deposit requirements pertains to a monthly depositor who has accumulated employment taxes of $2,900 at the end of October?

11 Answer below

a. The taxes must be deposited on or before November 15.

b. The undeposited taxes should be carried over to the end of November.

c. No deposit is required.

d. The taxes must be deposited on or before the next banking day.

or e. None of these choices are correct.

Explain why the answer is correct

12 Question: The taxes imposed under the Social Security Act consist of:

12 Answer below

a. two taxes on employees.

b. two taxes on employers.

c. OASDI and HI taxes.

d. taxes on the net earnings of the self-employed.

or e. All of these choices are correct.

Explain why the answer is correct

13.Use the following tax rates, ceiling and maximum taxes:

Employee and Employer OASDI: 6.2% $132,900 $8,239.8

Employee* and Employer HI: 1.45% No limit No maximum

Self-employed OASDI: 12.4% $132,900 $16,479.6

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 overtime rate).

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.

13 Question: Ralston is the sole proprietor of Cut & Curl. During the year, his net earnings were $79,700. What are his self-employment taxes (OASDI and HI) on these earnings? Round your answer to the nearest cent.

Explain why the answer is correct

14.Use the following tax rates, ceiling and maximum taxes:

Employee and Employer OASDI: 6.2% $132,900 $8,239.80

Employee* and Employer HI: 1.45% No limit No maximum

Self-employed OASDI: 12.4% $132,900 $16,479.6

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 August 1, Huff (part-time waitress) reported on Form 4070 the cash tips of $158.50 that she received in July. During August, Huff was paid wages of $550 by her employer. Determine the following:Round your answers to the nearest cent.

14 Questions: OASDIHI(a.)What is the OASDI & HI amount of social security taxes that the employer should withhold from Huff's wages during August:...

(b.)What is the OASDI & HI amount of the employer's social security taxes on Huff's wages and tips during August:....

Explain why the answer is correct