TER 3 SoCial Security TaxesFrancis Aha, a salaried employee of Wilson Advertising Agency, is paid every Friday. She earned $1,925 for thisJanuary 25, Berra's cumulative gross earnings for the year were $2,765.70. FICA taxes to be withheld on $460But after the employer has collected the tax, the employee's liability ceases. Thefollowing examples illustrate the computation of the FICA taxes to be withheld.Casey Berra, employed by Gobel Company, earned $460 during the week ended January 25, 20--. Prior toempor the tax extends to both the employee and the employer,1.are computed as follows:EXAMPLE 3-1OASDITaxable WagesHITax Rate$ 460Taxable Wages.460OASDI Tax to Be Withheld.X 6.2%Tax RateX 1.45%$ 28.52HI Tax to Be Withheld6.672.aoRNor to tne pay of November 1, 20--, she had earned $132.450. The FICA taxes to be withheld from Aha's payon November 1 are computed as follows:OASDIHITaxable Wage Limit.Wages Paid to Date.Taxable Wages This Pay.$132,900Taxable Wage Limit.NONE$132,450Wages Paid to DateTaxable Wages This PayTax Rate...132,450450$ 1,925Tax RateX 6.2%X 1.45%OASDI Tax to Be Withheld.$27.90HI Tax to Be Withheld$ 27.913.Marc Todd, president of Uni-Sight, Inc., is paid $5,200 semimonthly. Prior to his last pay on December 27, 20-, Toddnad earned $135,000. The FICA taxes to be withheld from Todd's pay on December 27 are computed as follows:OASDIHITaxable Wage Limit..NONETaxable Wage Limit..Wages Paid to Date.Taxable Wage This Pay...$132,900$135,000Wages Paid to DateTaxable Wages This Pay.OASDI Tax to Be Withheld. .135,000$. $ 5,200-0-.....Tax Rate.X1.45%-0-HI Tax to Be Withheld. .$ 75.40Jennifer Matthews employed by Quality Company is paid $5,000 weekly. Prior to the pay of September 27, 20--, shehad earned $200,000. The FICA taxes to be withheld from Jennifer's pay on September 27 are computed as follows:4.HIOASDITaxable Wage Limit (Applicableon Wages at 1.45%)......Wages Paid to DateTaxable Wage This Pay.Tax Rate ..HI Tax to Be Withheld.$132,900Taxable Wage Limit.Wages Paid to Date..Taxable Wages This Pay ...NONE200,000$200,000%24-0-$ 5,000OASDI to Be Withheld...%24-0-1.45%$ 72.50Additional 0.9% HI Tax on Wages inExcess of $200,000 = $5,000X 0.9 D%3D45.00%3D$ 117.50Total HI Tax to Be Withheld... ($40) into the plan for Gorman. This week's pay would have a:a matching contributionDeduction for OASDI taxa.$b. Deduction for HI tax2$SHOWМЕ НOW3-5A • LO 3In 20--, the annual salaries paid each of the officers of Abrew, Inc., follow. The officers are paid semimonthly on the15th and the last day of the month. Compute the FICA taxes to be withheld from each officer's pay on (a) November15 and (b) December 31.See Example 3-1 on page 3-11November 15a.HIAnnualOASDI TaxableOASDITaxableHIName and TitleSalaryEarningsТaxEarningsТаxHanks, Timothy, PresidentGrath, John, VP FinanceJames, Sally, VP SalesKimmel, Joan, VP Mfg.Wie, Pam, VP PersonnelGrant, Mary, VP Secretary$156,000138,00069,60054,00051,60049,200December 31b.HIAnnualOASDI TaxableOASDITaxableHISalaryEarningsТаxEarningsТаxName and TitleHanks, Timothy, PresidentGrath, John, VP FinanceJames, Sally, VP SalesKimmel, Joan, VP Mfg.Wie, Pam, VP PersonnelGrant, Mary, VP Secretary$156,000138,00069,60054,00051,60049,2003-38

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.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15EA: In EA14, you prepared the journal entries for the employee of Toren Inc. You have now been given the...

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An employee earns $8,000 in the first pay period. The FICA Social Security Tax rate is 6.2%, and the FICA Medicare tax rate is 1.45%. What is the employees FICA taxes responsibility? A. $535.50 B. $612 C. None, only the employer pays FICA taxes D. $597.50 E. $550
_____1. Employees FICA tax rates A. Severance pay _____2. Form SS-4 B. By the 15th day of the following month _____3. Semiweekly depositor C. Employers Quarterly Federal Tax Return _____4. Taxable for FICA D. Application for Employer Identification Number _____5. Nontaxable for FICA E. 6.2 percent and 1.45 percent _____6. Self-employeds FICA tax rates F. Employees application for social security card _____7. Form 941 G. Cumulative wages of 128,400 _____8. Monthly depositor H. More than 50,000 in employment taxes in the lookback period _____9. OASDI taxable wage base I. 12.4 percent and 2.9 percent _____10. Form SS-5 J. Employers matching contributions into employees deferred compensation arrangements
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In EA14, you prepared the journal entries for the employee of Toren Inc. You have now been given the following additional information: May is the first pay period for this employee. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to the employee. FICA Social Security and FICA Medicare match employee deductions. The employer is responsible for 70% of the health insurance premium. Using the information from EA14 and the additional information provided: A. Record the employer payroll for the month of May, dated May 31, 2017. B. Record the payment in cash of all employer liabilities only on June 1.
Amanda Autry and Carley Wilson are partners in A W Gift Shop, which employs the individuals listed below. Paychecks are distributed every Friday to all employees. Based on the information given, compute the amounts listed below for a weekly payroll period. Employers OASDI Tax ________ Employers HI Tax ________
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K t ht ences The employees of Ethereal Bank are paid on a semimonthly basis. All employees are single. There are no pre-tax deductions. Required: Compute the FICA taxes for the employees for the November 30 payroll. All employees have been employed for the entire calendar year. Note: Round "Social Security Tax" and "Medicare Tax" to 2 decimal places. Employee R. Bellagio B. Khumalo S. Schriver K. Saetang T. Ahmad M. Petrova Semimonthly Pay $ $ $ $ $ $ 9,519 6,719 6,838 8,200 10,700 9,050 YTD Pay for November 15 Pay Date Social Security Tax for November 30 Pay Date Medicare Tax for November 30 Pay Date
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3-4A • L O 2, 3 See Example 3-1 on page 3-11 Ken Gorman is a maitre d' at Carmel Dinner Club. On February 1, 20-- his gross pay was $800 (three days working, one paid vacation day, and one paid sick day). He also reported to his employer tips of $900 for the previous month (applicable taxes to be deducted out of this pay). Gorman belongs to the company's 401(k) plan and has 5% of his gross pay ($800) deducted each week (salary reduction). Carmel Dinner Club also provides a matching contribution ($40) into the plan for Gorman. This week's pay would have a: a. Deduction for OASDI tax 24 b. Deduction for HI tax $ 3-5A LO 3 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. See Example 3-1 on page 3-11 SHOW ME HOW a. November 15 HI Annual OASDI Taxable OASDI Taxable HI Name and Title…