Ocean City College gives its faculty the option of receiving the balance of their contract at the end of the semester on May 17, 20--. The faculty can receive one lump-sum payment instead of receiving the remaining seven biweekly pays over the summer. Use the data given below to complete the Payroll Register on May 17. No employee has reached the OASDI ceiling, and all employees are taking the lump-sum payment. The state withholding rate is 2.0% of total earnings; the city withholding rate is 1.0% of total earnings. The bi-weekly wage bracket is used for federal income taxes. To calculate the tax withholdings, you must calculate the rounded tax for each pay and multiply by the number of pays in the lump-sum payment. Click here to access the Wage-Bracket Method Tables.
For Period Ending May 17
Marital No. of Bi-weekly (a)Total Lump- Deductions (b) FICA (c) (d) (e) Net
Status W/H Earnings Sum
Allow Payment OASDI HI FIT SIT CIT Pay
Employee
Name
Kinnery,
Thomas S 1 $2,000.00
Matthews,
Mary S 1 $2,000.00
Grace,
Catherine S 0 2,200.00
Michael,
Sean S 1 2,060.00
Totals $8,860.00
Compute the employer's FICA taxes for the pay period ending May 17.