Question

Dee is paid $2,345 on November 8, 20--. Dee had cumulative gross earnings, including overtime pay, of $127,100 prior to this pay. Round your answers to the nearest cent.
a. The amount of OASDI taxes to withhold from Dee's pay is $ ________
b. The amount of HI taxes to withhold from Dee's pay is $ _______.

Answer 1

Answer:

PART A

The amount of OASDI taxes to withhold from Dee's pay is ($128,400 - $127,100) = 1300 x 6.2%  

The amount of OASDI taxes to withhold from Dee's pay is = $80.60

Part B

The 2018 wage base is $128,400 maximum amount of OASDI tax  

The amount of HI taxes to withhold from Dee's pay is = $ 2345 x .0145%  

The amount of HI taxes to withhold from Dee's pay is = $34