Use the following tax rates, ceiling and maximum taxes: Employee and Employer OASDI:    6.20%                 $137,700                         $8,537.40 Employee* and Employer HI:         1.45%                 No limit                          No maximum Self-employed OASDI:                     12.4%                 $137,700                       $17,074.80.60 Self-employed HI:                             2.9%                   No limit                         No maximum ​ *Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed. ​ Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows: 1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimals places (round the hourly rate to 2 decimal places     before multiplying by one and one-half to determine the overtime rate). 2. If the third decimal place is 5 or more, round to the next higher cent. 3. If the third decimal place is less than 5, drop the third decimal place. ​ Refer to Instruction 3-1. Crow earned $585.15 during the week ended March 1, 20--. Prior to payday, Crow had cumulative gross earnings of $4,733.20.   a) The amount of OASDI taxes to withhold from Crow's pay is __________. b) The amount of HI taxes to withhold from Crow's pay is __________.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Instruction 3-1

Use the following tax rates, ceiling and maximum taxes:

Employee and Employer OASDI:    6.20%                 $137,700                         $8,537.40

Employee* and Employer HI:         1.45%                 No limit                          No maximum

Self-employed OASDI:                     12.4%                 $137,700                       $17,074.80.60

Self-employed HI:                             2.9%                   No limit                         No maximum

*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.

Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows:

1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimals places (round the hourly rate to 2 decimal places

    before multiplying by one and one-half to determine the overtime rate).

2. If the third decimal place is 5 or more, round to the next higher cent.

3. If the third decimal place is less than 5, drop the third decimal place.

Refer to Instruction 3-1. Crow earned $585.15 during the week ended March 1, 20--. Prior to payday, Crow had cumulative gross earnings of $4,733.20.

 
a) The amount of OASDI taxes to withhold from Crow's pay is __________.
b) The amount of HI taxes to withhold from Crow's pay is __________.
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