Scenario 2. Partially Exceeds the Cap Scenario 2: A portion of earnings to date and current earnings, when combined, exceed the wage cap. Sydney, OASDI Example 2, has earnings to date of $136,500 and current wages of $4,000. To determine how much of her current earnings will be subject to OASDI, add earnings to date and current wages, $136,500 $4,000 $140,500. Then subtract from this the OASDI cap, $140,500 $137,700 $2,800. This amount exceeds the OASDI cap and is not subject to tax To determine the amount to tax, begin with current wages and subtract the amount that exceeds the cap ($4,000-$2,800 $1,200). This amount ($1,200) of current earnings is under the cap and taxed at the OASDI rate of 6.2% or $74.40. Tackle It Note: Round to the nearest cent Michael Jordan has earned to date $134,000 and has current earnings of $7,370.00 Employee: Jordan, Michael Earnings to Date: Current Earnings: OASDI Withholding: $134,000.00 $7,370.00 x