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Use the following tax rates, ceiling, and maximum taxes: Employee and Employer OASDI: 6.20% $160,200 $9,932.40 Employee and Employer HI: 1.45% Self-employed OASDI: 12.4% No limit $160,200 No maximum $19,864.80 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 decimal 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 drop the third decimal place. Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow. Crow earned $585.15 during the week ended March 1, 20--. Prior to payday, Crow had cumulative gross earnings of $4,733.20. Round your answers to the nearest cent. 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

Use the following tax rates, ceiling, and maximum taxes: Employee and Employer OASDI: 6.20% $160,200 $9,932.40 Employee and Employer HI: 1.45% Self-employed OASDI: 12.4% No limit $160,200 No maximum $19,864.80 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 decimal 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 drop the third decimal place. Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow. Crow earned $585.15 during the week ended March 1, 20--. Prior to payday, Crow had cumulative gross earnings of $4,733.20. Round your answers to the nearest cent. 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
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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Use the following tax rates, ceiling, and maximum taxes: Employee and Employer OASDI: 6.20% $160,200 $9,932.40 Employee and Employer HI: 1.45% No limit No maximum Self-employed OASDI: 12.4% $160,200 $19,864.80 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 decimal 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 drop the third decimal place. Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow. Crow earned $585.15 during the week ended March 1, 20--. Prior to payday, Crow had cumulative gross earnings of $4,733.20. Round your answers to the nearest cent. 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
Transcribed Image Text:Use the following tax rates, ceiling, and maximum taxes: Employee and Employer OASDI: 6.20% $160,200 $9,932.40 Employee and Employer HI: 1.45% No limit No maximum Self-employed OASDI: 12.4% $160,200 $19,864.80 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 decimal 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 drop the third decimal place. Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow. Crow earned $585.15 during the week ended March 1, 20--. Prior to payday, Crow had cumulative gross earnings of $4,733.20. Round your answers to the nearest cent. 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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