Question

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)]

Empty Fields Company pays its salaried employees monthly on the last day of each month. The annual salary payroll for 20-- follows. Compute the following for the payroll of December 31; round your answers to the nearest cent.

Employee	Annual Salary		OASDI Taxable Wages		OASDI Tax		HI Taxable Wages		HI Tax
Utley, Genna	$37,040		$		$		$		$
Werth, Norm	48,900
Bass, John	40,000
Ruiz, Sam	135,000
Compton, Sue	36,900
Williams, Mary	48,500
Patel, Raymond	106,080
Carson, Abe	56,900
Livinsky, Sarah	37,850
Harper, Mark	51,200
Totals			$		$		$		$

Employer's OASDI Tax	$
Employer's HI Tax	$

Answer 1

Answer :

Wallinton company
Employee	Annual Salary	OASDI Taxabke wages	OASDI Tax	HI taxable wages	HI Tax
Utley,Genna	37040	3086.67	191	3086.67	45
Werth,Norm	48900	4075.00	253	4075.00	59
Bass,John	40000	3333.33	207	3333.33	48
Ruiz,Sam	135000	4650.00	288	11250.00	163
Compton,Sue	36900	3075.00	191	3075.00	45
Williams,Marry	48500	4041.67	251	4041.67	59
Patel,Raymond	106080	8840.00	548	8840.00	128
Carson, Abe	56900	4741.67	294	4741.67	69
Livinsky,Sarah	37850	3154.17	196	3154.17	46
Harper,Mark	51200	4266.67	265	4266.67	62
Comployer's OASDI Tax = 43264*6.2% = 2682
Employer's HI Tax = (598370/12)*1.45% = 723
Ruiz,sam = 128400 - ((135000/12)*11) = 4650