Question
Use the following tax rates, ceiling and maximum taxes: Employee and Employer OASDI: 6.20% $127,200 $7,886.40 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% | $127,200 | $7,886.40 |
Employee* and Employer HI: | 1.45% | No limit | No maximum |
Self-employed OASDI: | 12.4% | $127,200 | $15,772.80 |
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.
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? A. 44th pay, B. 45th Pay, C. 46th Pay, 47th Pay, 48th pay
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