Asked Jan 30, 2020

Volpe Corporation has only five employees who are all paid $1,200 per week. Compute the total FICA taxes that the employer would withhold from the five employees each week and the amount the company would pay as its own liability for the employer's share of the FICA taxes on the weekly wages of the five employees:

Round your taxable wages per paycheck to the nearest cent.

Employees' total OASDI $
Employees' total HI $
Employer's total OASDI $
Employer's total HI $



Expert Answer

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Step 1

FICA tax:


FICA tax refers to the Federal Insurance Contribution Act tax which Country U law that creates the payroll tax requiring deductions.


FICA imposes two taxes on the employer and the employee. In this, one tax would finances the federal old age, survivors and disability insurance programs which would be called as the OASDI. The other tax would finance the hospital insurance (HI) or the Medicare program.


Step 2

Calculate the total wages for five employees.


Accounting homework question answer, step 2, image 1




Step 3

Calculate the employees’ total OASDI tax.


Accounting homework question answer, step 3, image 1

Thus, the total employees’ total OASDI tax is $372.


Calculate the employees’ total HI tax.


Accounting homework question answer, step 3, image 2

Thus, the total employees’ total HI tax is $87.




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