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)]

Empty Fields Company pays its salaried employees monthly on the last day of each month. The annual salary payroll for 20-- follows. Compute the following for the payroll of December 31; round your answers to the nearest cent.

I JUST NEED RUIZ, SAM COMPLETED.

Employee	Annual Salary		OASDI Taxable Wages		OASDI Tax		HI Taxable Wages		HI Tax
Utley, Genna	$18,000		$		$		$		$
Werth, Norm	52,800
Bass, John	27,600
Ruiz, Sam	133,400
Compton, Sue	22,800
Williams, Mary	16,800
Patel, Raymond	100,800
Carson, Abe	55,200
Livinsky, Sarah	34,800
Harper, Mark	51,600
Totals			$		$		$		$

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