Compute the FICA taxes for each employee and the employer's FICA taxes.
Example 3-2
Wallington Company has 100 employees, each earning $525.25 a week.
| OASDI | ||||
| Amount of OASDI tax withheld from each employee's paycheck each week: | $32.57 | (6.2% × $525.25) | ||
| Total tax withheld from the 100 employees' wages: | $3,257.00 | ($32.57 × 100) | ||
| Tax on employer: | $3,256.55 | [6.2% × ($525.25 × 100)] | ||
| HI | ||||
| Amount of HI tax withheld from each employee's paycheck each week: | $7.62 | (1.45% × $525.25) | ||
| Total tax withheld from the 100 employees' wages is: | $762.00 | ($7.62 × 100) | ||
| Tax on employer: | $761.61 | [1.45% × ($525.25 × 100)] |
The biweekly taxable wages for the employees of Rite-Shop follow.
Compute the FICA taxes for each employee and the employer's FICA taxes. Round all computations to the nearest cent.
|
FICA Taxes |
||||||||
| Employee No. | Employee Name | Biweekly Taxable Wages | OASDI | HI | ||||
| 711 | Castro, Manny | $1,000.00 | $fill in the blank 1 | $fill in the blank 2 | ||||
| 512 | Corrales, Pat | 968.00 | fill in the blank 3 | fill in the blank 4 | ||||
| 624 | Guitar, Joseph | 1,004.00 | fill in the blank 5 | fill in the blank 6 | ||||
| 325 | Moore, Connie | 1,046.40 | fill in the blank 7 | fill in the blank 8 | ||||
| 422 | Morrison, Harry | 1,200.00 | fill in the blank 9 | fill in the blank 10 | ||||
| 210 | Robertson, Catherine | 1,044.80 | fill in the blank 11 | fill in the blank 12 | ||||
| 111 | Swarez, Joseph | 1,122.00 | fill in the blank 13 | fill in the blank 14 | ||||
| Totals | $fill in the blank 15 | $fill in the blank 16 | $fill in the blank 17 |
| Employer's OASDI | $fill in the blank 18 | $fill in the blank 19 | |
| Total Taxable Wages | Employer's OASDI Tax |
| Employer's HI Tax | $fill in the blank 20 | $fill in the blank 21 | |
| Total Taxable Wages | Employer's HI Tax |
OASDI Tax:
The OASDI (Old Age, Survivors, and Disability Insurance program) tax, often referred as the social security tax is created by the government to withhold taxes from employees to safeguard their social security benefits. This tax is withheld by the employer at 6.2% on the wages of employee.
HI Tax:
The Hospital Insurance (HI) tax, often referred as the medicare tax is created by the government to withhold taxes from the employees to fund the portion of medical insurance programme. This tax is withheld by the employer at 1.45% on the wages of employee.
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