Mary Givens and Peggy Moser are partners engaged in operating The G&M Doll Shop,
ID: 2483321 • Letter: M
Question
Mary Givens and Peggy Moser are partners engaged in operating The G&M Doll Shop, which has employed the following persons since the beginning of the year:
Givens and Moser are each paid a weekly salary allowance of $1,000.
The doll shop is located in a state that requires unemployment compensation contributions of employers of one or more individuals. The company is subject to state contributions at a rate of 3.25% for wages not in excess of $10,000.
Compute each of the following amounts based upon the 41st weekly payroll period ending October 7, 2016. Round your intermediate calculations and final answers to the nearest cent. If an amount is zero, enter "0"
a. Amount of FICA taxes (OASDI and HI) to be withheld from the earnings of each person.
please help. I'm not sure how to figure out the OASDI and HI for these.
T. Binn (general office worker) $3,100 per month W. Ashworth (saleswoman) $30,000 per year K. Bitner (stock clerk) $280 per week J. Vern (deliveryman) $350 per week A. Axel (cleaning and maintenance, part-time) $240 per weekExplanation / Answer
Taxable Earnings
OASDI @ 6.2%
HI @1.45%
M. Givens
$1,000.00
$0.00
$0.00
P. Moser
$1,000.00
$0.00
$0.00
T. Binn
$715.38
$44.35
$10.37
W. Ashworth
$576.92
$35.77
$8.37
K. Bitner
$280.00
$17.36
$4.06
J. Vern
$350.00
$21.70
$5.08
A. Axel
$240.00
$14.88
$3.48
M. Givens and P. Moser are not taxed by FICA as they are the partners.
Taxable Earnings
OASDI @ 6.2%
HI @1.45%
M. Givens
$1,000.00
$0.00
$0.00
P. Moser
$1,000.00
$0.00
$0.00
T. Binn
$715.38
$44.35
$10.37
W. Ashworth
$576.92
$35.77
$8.37
K. Bitner
$280.00
$17.36
$4.06
J. Vern
$350.00
$21.70
$5.08
A. Axel
$240.00
$14.88
$3.48
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