Answered: Volpe Corporation has only five…

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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Example 3-1

Example 3-2

Wallington Company has 100 employees, each earning $525.25 a week.

OASDI
Amount of OASDI tax withheld from each employee's paycheck each week:	$32.57	(6.2% × $525.25)
Total tax withheld from the 100 employees' wages:	$3,257.00	($32.57 × 100)
Tax on employer:	$3,256.55	[6.2% × ($525.25 × 100)]
HI
Amount of HI tax withheld from each employee's paycheck each week:	$7.62	(1.45% × $525.25)
Total tax withheld from the 100 employees' wages is:	$762.00	($7.62 × 100)
Tax on employer:	$761.61	[1.45% × ($525.25 × 100)]

Volpe Corporation has only five employees who are all paid $850 per week. Compute the total FICA taxes that the employer would withhold from the five employees each week and the amount the company would pay as its own liability for the employer's share of the FICA taxes on the weekly wages of the five employees:

Round your taxable wages per paycheck to the nearest cent.

Employees' total OASDI	$fill in the blank 1
Employees' total HI	$fill in the blank 2
Employer's total OASDI	$fill in the blank 3
Employer's total HI	$fill in the blank 4