3-1 on page 3-11 3-58 LO 3 See Example In 20- the annual salaries paid each of t

Question

3-1 on page 3-11 3-58 LO 3 See Example In 20- the annual salaries paid each of the officers of Perez, Inc, follow. The officers are paid semimonthly on the 15th and the last day of the month. Compute the FICA taxes to be withheld from each office's pay on (a) November 15 and (b) December 31. ME HOW November 15 OASDI Taxable Earnings HI Taxable Earnings Annual Salary $150,000 129,000 76,800 92,400 78,000 52,800 OASDI Tax HI Tax Name and Title Perez, Paul, President Donald, Donna, VP Finance Funke, Jack, VP Sales Weis, Al, VP Mfg. Lang, Hope, VP Personnel Lee, Amy, VP Secretary b. December 31 OASDI Taxable Earnings HI Taxable Earnings Annual OASDI Tax Name and Title Salary HI ?? Perez, Paul, President Donald, Donna, VP Finance Funke, Jack, VP Sales Weis, Al, VP Mfg. Lang, Hope, VP Personnel Lee, Amy, VP Secretary $150,000 129,000 76,800 92,400 78,000 52,800 3-54

Explanation / Answer

15-Nov Name and Title Annual Salary Upto Oct 31 Salary/24*20 months Semimontly salary =salary/24 OASDI Taxable O OASDI Tax HI Taxable HI Tax Salary Earnings (O*6.2%) Earnings H H*1.45% Perez, Paul, President $150,000 $125,000 $6,250 $2,200 $136.40 $6,250 $90.63 (127200-125000) Donald Donna VP Finance 129,000 $107,500 $5,375 $5,375 $333.25 $5,375 $77.94 Funke, Junk, VP Sales 76,800 $64,000 $3,200 $3,200 $198.40 $3,200 $46.40 Weis, Al, VP manu 92,400 $77,000 $3,850 $3,850 $238.70 $3,850 $55.83 Lang, Hope VP Personnel 78,000 $65,000 $3,250 $3,250 $201.50 $3,250 $47.13 Lee,Amy VP Secretary 52,800 $44,000 $2,200 $2,200 $136.40 $2,200 $31.90 31-Dec Name and Title Annual OASDI Taxable O OASDI Tax HI Taxable HI Tax Salary Earnings (O*6.2%) Earnings H H*1.45% Hanks, Timothy, President $150,000 0 0 $6,250 90.63 Grath, John, VP Finance 129,000 5,375 $333.25 $5,375 $77.94 James, Sally, VP Sales 76,800 3,200 $198.40 $3,200 $46.40 Kimmel, Joan, VP Mfg. 92,400 3,850 $238.70 $3,850 $55.83 Wie, Pam, VP Personnel 78,000 3,250 $201.50 $3,250 $47.13 Grant, Mary, VP Secretary 52,800 2,200 $136.40 $2,200 $31.90

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