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: Employee* and Employer HI: Self-employed OASDI: Self-employed HI: 6.20% $160,200 1.45%

Use the following tax rates, ceiling, and maximum taxes: Employee and Employer OASDI: Employee* and Employer HI: Self-employed OASDI: Self-employed HI: 6.20% $160,200 1.45% No limit 12.4% $160,200 2.9% No limit *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. 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. 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 A A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

a To calculate the amount of OASDI taxes to withhold from Eagers pay we need to determine his taxabl... 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_2

Step: 3

blur-text-image_3

Document Format ( 2 attachments)

PDF file Icon
663e02df130b8_960575.pdf

180 KBs PDF File

Word file Icon
663e02df130b8_960575.docx

120 KBs Word File

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

Payroll Accounting 2017

Authors: Bernard J. Bieg, Judith Toland

27th edition

1305675126, 1305675124, 9781305888586, 1305888588, 978-1337734776

More Books

Students also viewed these Accounting questions

Question

What is the biggest strength of the program?

Answered: 1 week ago