Anyone good with accounting if so, I need some help with this accounting problem
I have 4 employees and I need to figure out all their FICA witholdings for Social Security. Here are the figures
This is gross pay for each employee
$2500 $1515 $475 $600 Gross pay
$198 $182 $52 $48 Income tax withholdings
To figure FICA withholdings you compute gross pay by 6.20%
If you compute by gross pay you get: $315.58
If you compute by pay minus withholdings you get: $ 285.82
I should have $259.78, so I am off by $26.04 and I cannot figure out where the difference is.
FICA wage base and Old age, survivors, and disability insurance
rates (Social Security):
-6.2% on $94,200 for 2006 (employee &
employer)
-12.4% on $94,200 for 2006 (self employed)
Medicare basic hospital insurance:
-1.45% on all wages (employee & employer)
-2.9% on net earnings (self employed)
I did a quick and dirty calculation where you annualize the FICA. Basically I calculated 87000(the person getting 2500 a week capped) x .062 / 52 + the weekly FICA of the other employees and was about a buck off. I might have made an error. I’m not even sure if thats the right way to calculate that.
yea that is where I am gettin mixed up. medicare is gross times 1.45, and SS should gross times times 6.20% When I look at an old paycheck stub, the other allowances are subtracted b4 FICA is computed