Question
Use the following tax rates, ceiling, and maximum taxes: Employee and Employer OASDI: 6.20% $147,000 $9,114.00 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% | $147,000 | $9,114.00 |
| Employee* and Employer HI: | 1.45% | No limit | No maximum |
| Self-employed OASDI: | 12.4% | $147,000 | $18,228.00 |
| 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.
Crow earned $585.15 during the week ended March 1, 20--. Prior to payday, Crow had cumulative gross earnings of $4,733.20. Round your answers to the nearest cent.
| a. The amount of OASDI taxes to withhold from Crow's pay is | $ |
| b. The amount of HI taxes to withhold from Crow's pay is | $ |
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The Oxford Handbook Of Computational Economics And Finance
Authors: Shu-Heng Chen, Mak Kaboudan, Ye-Rong Du
1st Edition
0199844372, 978-0199844371
