County Bank has the following situation facing the payroll administrator as she processes the weekly payroll for the last payroll of 2020:

1. The company pays its workers the difference between their regular wages and the amount received for jury duty. Employee 1 is a non-exempt employee who has been receiving $400 a week. He was not at work this pay period because he completed 5 days of jury duty for which he was paid $70 ($10 per day plus 20 cents per mile from her house to the courthouse, a 20-mile round trip). How much of Employee 1's earnings from the company are subject to FICA taxes since he didn't actually have any work time?

2. Employee 2 is a non-exempt employee and earned the top employee award this quarter. During this payroll week the company gave her a $100 VISA gift card for this award. Will this have any FICA tax implications?

3. Employee 3 is an exempt, salaried employee who makes $1,000 weekly. He has informed the payroll administrator that he has already paid OASDI taxes on wages in excess of the taxable wage base because he works for another employer who has also been deducting FICA. He wants County Bank to not deduct the OASDI portion of FICA taxes from his final 2020 paycheck. Should the payroll administrator comply with his request? Why or why not? If she doesn't comply, does Employee 3 have any other course of action he can take?

Answer rating: 100% (QA)

The FICA tax Federal Insurance Contribution Act tax is an employee payr... View the full answer