*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to
ID: 2609370 • Letter: #
Question
*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.
During 2018, Rachael Parkins, president of Mathieson Company, was paid a semimonthly salary of $7,500. Compute the amount of FICA taxes that should be withheld from her.
Note: Rachael's tax return status is single. If an amount is zero, enter "0".
I've used all my "check work" options for this homework, but can't seem to figure out how to calculate OASDI and HI for this employee. Please help me Chegg Experts!!!?
Employee and Employer OASDI: 6.20% $127,200 $7,886.40 Employee* and Employer HI: 1.45% No limit No maximum Self-employed OASDI: 12.4% $127,200 $15,772.80 Self-employed HI: 2.9% No limit No maximumExplanation / Answer
a 9th paycheck: OASDI 465.00 =7500*6.2% HI 108.75 =7500*1.45% b Accumulated earnings 16th paycheck = 16*7500 = $120000 17th paycheck: OASDI 446.40 =(127200-120000)*6.2% HI 108.75 =7500*1.45% c Accumulated earnings 23rd paycheck = 23*7500 = $172500 24th paycheck: OASDI 0.00 HI 108.75 =7500*1.45% d Additional 0.9% HI tax withheld=(280000-200000)*0.9%= $720
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