Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

  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.

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 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Oxford Handbook Of Computational Economics And Finance

Authors: Shu-Heng Chen, Mak Kaboudan, Ye-Rong Du

1st Edition

0199844372, 978-0199844371

More Books

Students also viewed these Finance questions

Question

Additional Factors Affecting Group Communication?

Answered: 1 week ago