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Solutions—Series B Problems

3–1B.

Biweekly

Employee Taxable FICA Taxes

No. Employee Name Wages OASDI HI

711 Adams, Jane $631.24 $39.14 $9.15

512 Candy, James 892.00 55.30 12.93

624 Guiterrez, Roberta 499.75 30.98 7.25

325 Harrison, Ken 1,250.00 77.50 18.13

422 Lowland, Harriet 1,600.00 99.20 23.20

210 Ranger, Ralph 975.50 60.48 14.14

111 Sweat, Rudy 819.45 50.81 11.88

Totals $6,667.94 $413.41 $96.68

Employer’s OASDI

Employer’s HI Tax

$6,667.94

Total Taxable Wages

$6,667.94

Total Taxable Wages

$413.41

Employer’s OASDI Tax

$96.69

Employer’s HI Tax

3–2B.

OASDI HI

(a)9th paycheck $322.40 $75.40

(b)22nd paycheck [$110,100 – ($5,200 × 21 pays) = $900 OASDI taxable] 55.80 75.40

(c)24th paycheck 0 75.40

3–3B.

OASDI HI

(a)The amount of FICA taxes that the employer should

withhold from Sherm’s wages during May

($630 + $475 = $1,105 taxable) $68.51 $16.02

(b) The amount of the employer’s FICA taxes on Sherm’s

wages and tips during May 68.51 16.02

3–4B.

(a) $900 + $860 = $1,760 × 0.062 = $109.12

(b) $900 + $860 = $1,760 × 0.0145 = $25.52

3–5B.

| | October 31 |

Name and Title |

Annual

Salary | OASDI

Taxable

Earnings |

OASDI

Tax | HI

Taxable

Earnings |

HI

Tax |

Perez, Paul, President |...