Question

During 2019, Rachael Parkins, president of Mathieson Company, was paid a semimonthly salary of $8,000. Compute the amount of FICA taxes that should be withheld from her.Note: Rachael's tax return status is single. If an amount is zero, enter "0". OASDIHIa.9th paycheck$b.17th paycheck$c.24th paycheck$d.If Rachael Parkin's year-to-date earnings as of her 24th paycheck are $192,000, and her year-end bonus is $100,000, how much is the additional 0.9% HI tax withheld?

Answer 1

Answer:

9th payment:

OASDI:  496 dollars

HI:           116 dollars

17th payment:

OASDI:  303.80 dollars

HI:           116.00 dollars

24th payment

HI:           116.00 dollars

Additional 0.9%: 178 dollars

Explanation:

FICA taxes:

OASDI 132,900 celling

HI: 1.45% celling 200,000 for single

up to this point the tax increase by 0.90%

8,000 x  9th payment:    72,000 below celling

OASDI: 8,000 x 6.20% = 496

HI:         8,000 x 1.45%  =  116

8,000 x 17th payment:   136,000 Is above celling for OASDI

we just pay for the difference

previous earnings: 136,000 - 8,000 = 128,000

celling: 132,900

132,900 - 128,000 = 4,900

OASDI: 4,900 x 6.20% = 303,8

HI:         8,000 x 1.45% =  116

8,000 x 24th payment:  192,000 above celling for OASDI

OASDI: zero

HI: 8,000 x 1.45% =  116

Year end bonus: 100,000 accumulated 292,000 above HI celling

the diffrence will pay additional 0.9%

292,000 - 250,000 = 42,000

additional 0.9% = 42,000 x 0.9% = 378

year-end bonus: Bonuses are taxable compensation subject to income tax withholding and FICA. They’re treated as supplemental wages.