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Note: In this chapter and in all succeeding work throughout the course, unless instructed otherwise, use the following rates, ceiling, and maximum taxes. Employee and Employer OASDI: 6.20% $ 128,400 $7,960.80 Employee* and Employer HI: 1.45% No limit No maximum Self-employed OASDI: 12.4% $128,400 $15,921.60 Self-employed HI: 2.9% No limit No maximum 1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the over- time 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, simply drop the third decimal place. Examples: Monthly rate $1,827 Weekly rate ($1,827 x 12)/52 = $421.615 rounded to $421.62 Hourly rate $421.62/40 = $10.540 rounded to $10.54 O.T. rate $10.54 x 1.5 = $15.81 Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow. *Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed. Example 3-1 During 2018, Rachael Parkins, president of Mathieson Company, was paid a semimonthly salary of $6,900. Compute the amount of FICA taxes that should be withheld from her. If an amount is zero, enter "o". OASDI HI a. 9th paycheck b. 19th paycheck 001 $ c. 24th paycheck d. If Rachael Parkin's year-to-date earnings as of her 24th paycheck are $165,600, and her year-end bonus is $100,000, how much is the additional 0.9% HI tax withheld

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