# Example 3-1: Computation of FICA TaxesThis document provides examples to illustrate the computation of FICA taxes to be withheld.## 1. Casey Berra- **Employment**: Gobel Company- **Earnings**: $460 during the week ended January 25.- **Cumulative Earnings for Year**: $2,765- **Tax Computation**: - **OASDI**: - Taxable Wages: $460 - Tax Rate: 6.2% - OASDI Tax To Be Withheld: $28.52 - **HI**: - Tax Rate: 1.45% - HI Tax To Be Withheld: $6.67## 2. Francis Aha- **Employment**: Wilson Advertising Agency- **Earnings**: $1,925 (weekly)- **Computation Date**: November 1- **Tax Computation**: - **OASDI**: - Taxable Wages Remaining: $132,450 - Tax Rate: 6.2% - OASDI Tax To Be Withheld: $27.91 - **HI**: - Tax Rate: 1.45%## 3. Marc Todd- **Position**: President, Uni-Sight, Inc.- **Earnings**: $5,200 (semimonthly)- **Prior Earnings**: $135,000- **Computation Date**: December 27- **Tax Computation**: - **OASDI**: - Taxable Wage Limit Reached - OASDI Tax To Be Withheld: $0 - **HI**: - Tax Rate: 1.45% - HI Tax To Be Withheld: $75.40## 4. Jennifer Matthews- **Employment**: Quality Company- **Earnings**: $5,000 (weekly)- **Prior Earnings**: $200,000- **Computation Date**: September 27- **Tax Computation**: - **OASDI**: - Taxable Wage Limit Reached - OASDI Tax To Be Withheld: $0 - **HI**: - Tax Rate: 1.45% **FICA Tax Computation Exercise for Abreu, Inc. Officers**In this exercise, we examine the annual salaries of officers at Abreu, Inc. and compute the FICA taxes to be withheld from each officer's salary on specific dates: November 15 and December 31.### Officer Salaries and Tax Calculations**Name and Title**1. **Hanks, Timothy, President** - **Annual Salary**: $156,0002. **Grath, John, VP Finance** - **Annual Salary**: $138,0003. **James, Sally, VP Sales** - **Annual Salary**: $69,6004. **Kimmel, Joan, VP Mfg.** - **Annual Salary**: $54,0005. **Wie, Pam, VP Personnel** - **Annual Salary**: $51,6006. **Grant, Mary, VP Secretary** - **Annual Salary**: $49,200### Calculation Tables#### November 15- **OASDI Taxable Earnings**: _______- **OASDI Tax**: _______- **HI Taxable Earnings**: _______- **HI Tax**: _______#### December 31- **OASDI Taxable Earnings**: _______- **OASDI Tax**: _______- **HI Taxable Earnings**: _______- **HI Tax**: _______This exercise allows students to understand how to calculate the OASDI (Old Age, Survivors, and Disability Insurance) and HI (Hospital Insurance) taxes withheld from salaries.

The federal Old-Age, Survivors, and Disability Insurance (OASDI) program is the official name for…

In 20-, the annual salaries paid each of the officers of Abrew, Inc., follow. The officers are paid semimonthly on the 15th and the last day of the month. Compute the FICA taxes to be withheld from each officer's pay on (a) November 15 and (b) December 31.

In 20-, the annual salaries paid each of the officers of Abrew, Inc., follow. The officers are paid semimonthly on the 15th and the last day of the month. Compute the FICA taxes to be withheld from each officer's pay on (a) November 15 and (b) December 31.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Dee is paid $2,345 on November 8, 20--. Dee had cumulative gross earnings, including overtime pay, of $131,600 prior to this pay. Round your answers to the nearest cent. a. The amount of OASDI taxes to withhold from Dee's pay is $ b. The amount of HI taxes to withhold from Dee's pay is $
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1. During 20--, Garr was paid a weekly salary of $2,540. The amount of FICA to be withheld from the following payments is: OASDI? HI?(a) For the 50th week (b) For the 51st week (c) For the 52nd week