Continuing Payroll Problem: Chapter 3

As you learned in the previous chapter, Kipley Company is a small manufacturing firm located in Pittsburgh, Pennsylvania. The company has a workforce of both hourly and salaried employees. In the last chapter, gross wages were computed for each employee. Adjacent to their name, each employee's gross wages are shown in the Payroll Register.

The next task is computing the FICA withholding for each employee and the employer's liability.

Requirements:

1. Compute the OASDI for each employee.
2. Compute the HI for each employee.
3. On the Employer Register, compute the employer's FICA liability.

Payroll Register Complete the steps below: 1. Compute the OASDI for each employee. . 2. Compute the HI for each employee. 3. Compute the totals for each tax. Note: Round your final answers to the nearest cent. KIPLEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20-- EARNINGS DEDUCTIONS NET PAY Name Gross OASDI HI FIT SIT SUTA CIT SIMPLE Grp. Ins. Health Ins. Ck. No. Amount Carson, F. $700.00 $ s Wilson, W. 897.04 Utley, H. 678.75 Fife, L. 877.10 Smith, L. 790.00 Fay, G. 539.15 Robey, G. 623.08 Schork, T. 773.08 Hardy, B. 666.11 Kipley, C. 1,000.00 Totals ---- Taxable Earnings In the Totals row, complete the following 1. Enter the earnings upon which the employer FICA liability will be computed. 2. Compute the employer OASDI liability, using 6.2%. 3. Compute the employer HI liability, using 1.45%. Note: Round your final answers to the nearest cent. KIPLEY COMPANY, INC. Taxable Earnings Payroll Taxes Earnings OASDI HI FUTA SUTA Totals s $