Instruction 3-1

question 75

Essay

Instruction 3-1
*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.
Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows:
1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimals places (round the hourly rate to 2 decimal places
    before multiplying by one and one-half to determine the overtime 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, drop the third decimal place.
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.
Refer to Instruction 3-1 . In this pay, Moss Company deducted OASDI taxes of $5,276.24 and HI taxes of $1,233.95 from the $85,100.90 of taxable wages paid. What is Moss Company's portion of the social security taxes for:
a) OASDI
b) HI

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Definitions:

Computerized Provider Order Entry System

A computer-based system that allows healthcare practitioners to enter medical orders into a computer system, aiming to reduce errors and improve efficiency.

Administrative Information System

Systems designed to support and manage the administrative functions of an organization, streamlining processes such as payroll, inventory, and records management.

Medication Telephone Order

A process where healthcare providers can give prescription orders over the phone to a pharmacy or hospital staff.

Health Care Provider

A professional offering medical services, advice, or care to individuals in need of health assistance.