Learning Objective $3$

Example $3-2$

Wallington Company has $100$ employees, each earning $$525\mathrm{.}25$ a week.

OASDI

Amount of OASDI tax withheld from each employee's paycheck each week:

Total tax withheld from the $100$ employees' wages:

$$32\mathrm{.}57(6\mathrm{.}2\%$$$525\mathrm{.}25)$

$$3,257\mathrm{.}00($$$32\mathrm{.}57100)$

$$3,256\mathrm{.}55[6\mathrm{.}2\%($$$525\mathrm{.}25100)]$

Tax on employer:

$H{I}_{?}$

Amount of HI tax withheld from each employee's paycheck each week:

Total tax withheld from the $100$ employees' wages is:

Tax on employer:

Volpe Corporation has only five employees who are all paid $$860$ per week. Compute the total FICA taxes that the employer would withhold from the five employees each week and

the amount the company would pay as its own liability for the employer's share of the FICA taxes on the weekly wages of the five employees:

Round your taxable wages per paycheck to the nearest cent.

Employees' total OASDI

Employees' total HI

Employer's total OASDI

Employer's total HI

$$

$

$

$