Example 3-1

Example 3-2

Wallington Company has 100 employees, each earning $525.25 a week.

OASDI
Amount of OASDI tax withheld from each employee's paycheck each week:		$32.57		(6.2% $525.25)
Total tax withheld from the 100 employees' wages:		$3,257.00		($32.57 100)
Tax on employer:		$3,256.55		[6.2% ($525.25 100)]
HI
Amount of HI tax withheld from each employee's paycheck each week:		$7.62		(1.45% $525.25)
Total tax withheld from the 100 employees' wages is:		$762.00		($7.62 100)
Tax on employer:		$761.61		[1.45% ($525.25 100)]

Audrey Martin and Beth James are partners in the Country Gift Shop, which employs the individuals listed below. Paychecks are distributed every Friday to all employees. Based on the information given, compute the amounts listed below for a weekly payroll period. Hint: It is important to ascertain whether a person's wages are considered wages or drawings.

If an amount is zero, enter "0". Round your answers to the nearest cent.

Name and Position	Salary	OASDI Taxable Earnings	OASDI Tax	HI Taxable Earnings	HI Tax
Zena Vertin, Office	$650 per week	$	$	$	$
Nicole Norge, Sales	1,890 per month
Bob Mert, Delivery	495 per week
Audrey Martin, Partner	785 per week
Beth James, Partner	785 per week
Totals		$	$	$	$

Employer's OASDI Tax	$
Employer's HI Tax	$