Question

Eager, a tipped employee, reported to his employer that he had received $320 in tips during March. On the next payday, April 4, he was paid his regular salary of $250.
a) The amount of OASDI taxes to withhold from Eager's pay is __________.
b) The amount of HI taxes to withhold from Eager's pay is __________.

Answer 1

Answer:

A. $35.34

B. $8.27

Explanation:

A. Calculation for The amount of OASDI taxes to withhold from Eager's pay

OASDI taxes to withhold =(320 + 250)*6.2%

OASDI taxes to withhold = $570 × 6.2%

OASDI taxes to withhold = $35.34

The amount of OASDI taxes to withhold from Eager's pay is $35.34

B. Calculation for amount of HI taxes to withhold from Eager's pay

HI taxes to withhold=(320 + 250)*1.45%

HI taxes to withhold =$570*1.45%

HI taxes to withhold= $8.27

Therefore The amount of HI taxes to withhold from Eager's pay is $8.27