1. Note: In this chapter and in all succeeding work throughout the course, unless instructed otherwise, use the following rates, ceiling, and maximum taxes.

   Employee and Employer OASDI:	6.20%	$128,400	$7,960.80
   Employee* and Employer HI:	1.45%	No limit	No maximum
   Self-employed OASDI:	12.4%	$128,400	$15,921.60
   Self-employed HI:	2.9%	No limit	No maximum

   1.	Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the over-time rate).
   2.	If the third decimal place is 5 or more, round to the next higher cent.
   3.	If the third decimal place is less than 5, simply drop the third decimal place.
   	Examples:	Monthly rate $1,827 Weekly rate ($1,827 12)/52 = $421.615 rounded to $421.62 Hourly rate $421.62/40 = $10.540 rounded to $10.54 O.T. rate $10.54 1.5 = $15.81

   Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.

   *Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.

   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)]

   The biweekly taxable wages for the employees of Rite-Shop follow.

   Compute the FICA taxes for each employee and the employer's FICA taxes. Round all computations to the nearest cent.

   					FICA Taxes
   Employee No.	Employee Name	Biweekly Taxable Wages			OASDI		HI
   711	Castro, Manny		$1,000.00		$		$
   512	Corrales, Pat		968.00
   624	Guitar, Joseph		1,004.00
   325	Moore, Connie		1,046.40
   422	Morrison, Harry		1,200.00
   210	Robertson, Catherine		1,044.80
   111	Swarez, Joseph		1,122.00
   	Totals		$		$		$

   Employer's OASDI	$		$
   	Total Taxable Wages		Employer's OASDI Tax

   Employer's HI Tax	$		$
   	Total Taxable Wages		Employer's HI Tax