Instruction 3-1 Use the Following Tax Rates and Taxable Wage Bases: Employees

question 18

Essay

Instruction 3-1
Use the following tax rates and taxable wage bases: Employees' and Employer's OASDI-6.2% both on $132,900; HI-1.45% for employees and employers on the total wages paid. Employees' Supplemental HI of 0.9 percent on wages in excess of $200,000 was not applicable.
Refer to Instruction 3-1. At Haddon, Inc., the office workers are employed for a 40-hour workweek and are paid on either an  annual, monthly, or hourly basis. All office workers are entitled to overtime pay for all hours worked  beyond 40 each workweek at 1.5 times the regular hourly rates.
Company records show the following information for the week ended December 26, 20--. On the form below, calculate for each worker: (a) regular earnings, (b) overtime earnings, (c) total  regular and overtime earnings, (d) FICA taxable wages, (e) FICA taxes to be withheld, and (f) net  pay for the week ended December 26, 20--. Assume that there are 52 weekly payrolls in 20--.  Also, determine the total for each of these six items.

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Definitions:

Personal Goals

Individual objectives that a person aims to achieve, which can be short-term or long-term and vary in nature.

Achievable Goals

Objectives that can realistically be accomplished within a given timeframe and with available resources.

McGregor

Douglas McGregor, an American social psychologist who proposed the Theory X and Theory Y concepts of employee motivation and management.

Theory Y

A management concept based on the belief that employees are intrinsically motivated to work and can be trusted with responsibility and autonomy.