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Use the following tax rates, ceiling, and maximum taxes: Line Item Description Amount Amount Amount Employee and Employer OASDI: 6.20% $160,200 $9,932.40 Employee* and Employer
Use the following tax rates, ceiling, and maximum taxes: | |||
---|---|---|---|
Line Item Description | Amount | Amount | Amount |
Employee and Employer OASDI: | 6.20% | $160,200 | $9,932.40 |
Employee* and Employer HI: | 1.45% | No limit | No maximum |
Self-employed OASDI: | 12.4% | $160,200 | $19,864.80 |
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.
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.
Line Item Description | Amount |
---|---|
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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