# 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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In 20-- the annual salaries paid each of the officers of Perez, 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. If an amount is zero, enter "0". Enter all earnings and taxes to two decimal places. a. November 15 Name and Title Annual Salary OASDI TaxableEarnings OASDI Tax HI TaxableEarnings HI Tax Perez, Paul, President $160,800 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 Donald, Donna, VP Finance 141,600 fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Funke, Jack, VP Sales 76,800 fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 Weis, Al, VP Mfg. 92,400 fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16 Lang, Hope, VP Personnel 78,000 fill in the blank 17 fill in the blank 18…
During the month of January, an employee earned $4,800 of salary. Withholdings from the employee's salary consist of FICA Social Security taxes of $297.60, FICA Medicare taxes of $69.60, federal income taxes of $511.20, and medical insurance deductions of $204.00. Prepare the journal entry to record the employer's salaries expense and related liabilities assuming these wages will be paid in early February. (Round your final answers to 2 decimal places.) View transaction list Journal entry worksheet 1 Record payroll for period. Note: Enter debits before credits. Date January 31 General Journal Debit Credit >
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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. Round your answers to the nearest cent. If an amount is zero, enter "0". a. November 15 Name and Title AnnualSalary OASDI TaxableEarnings OASDI Tax HI TaxableEarnings HI Tax Hanks, Timothy, President $152,280 $ $ $ $ Grath, John, VP Finance 137,400 James, Sally, VP Sales 68,400 Kimmel, Joan, VP Mfg. 55,200 Wie, Pam, VP Personnel 45,600 Grant, Mary, VP Secretary 37,200 b. December 31 Name and Title AnnualSalary OASDI TaxableEarnings OASDI Tax HI TaxableEarnings HI Tax Hanks, Timothy, President $152,280 $ $ $ $ Grath, John, VP Finance 137,400 James, Sally, VP Sales 68,400 Kimmel, Joan, VP Mfg. 55,200 Wie, Pam, VP Personnel 45,600…
Mullen Company pays its employees every other Friday, December 31, 2020, was a Sunday. On Friday, January 5, 2021, Mullen paid wages of $147,000, which covered the 14-day period from December 20, 2020, through January 2, 2021. Wages were eamed evenly across all days, including Saturdays and Sundays. Employee income taxes withheld for this payroll period totaled $17,185, while the FICA tax withheld was $13,300. (Ignore the employer payroll taxes in this exercise.) Prepare the entry to accrue the company's wages and payroll taxes at December 31, 2020. (Assume the $147,000 in wages was the gross amount of the payroll. Record debits first, then credits. Exclude explanations from any journal entries.) Dec Date 2020 31 Salary Expense Salary Payable Journal Entry Accounts Employee Income Tax Payable FICA Tax Payable Y Debit Credit
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 $
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. Round your answers to the nearest cent. If an amount is zero, enter "0". a. November 15 Name and Title AnnualSalary OASDI TaxableEarnings OASDI Tax HI TaxableEarnings HI Tax Hanks, Timothy, President $152,520 $ $ $ $ Grath, John, VP Finance 137,760 James, Sally, VP Sales 68,400 Kimmel, Joan, VP Mfg. 58,800 Wie, Pam, VP Personnel 52,800 Grant, Mary, VP Secretary 45,600 b. December 31 Name and Title AnnualSalary OASDI TaxableEarnings OASDI Tax HI TaxableEarnings HI Tax Hanks, Timothy, President $152,520 $ $ $ $ Grath, John, VP Finance 137,760 James, Sally, VP Sales 68,400 Kimmel, Joan, VP Mfg. 58,800 Wie, Pam, VP Personnel 52,800…
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
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