Mary makes $12.50 per hr she worked 44.5 hrs so i did 40 times 12.50 then 4.5 times $18.75 the added the totals But her . wages was $27,675.13 i need to know the taxable wages for OSADI and MEDICARE what is the amt being taken out for OASDI and MEDICARE
To determine the taxable wages for OASDI (Old Age, Survivors, and Disability Insurance) and Medicare, you first need to calculate the total wages earned by Mary.
In this case, Mary worked 44.5 hours at a rate of $12.50 per hour. To calculate her total wages, you multiplied the regular hours (40 hours) by the hourly wage ($12.50), which equals $500. Then you calculated the overtime hours (4.5 hours) and multiplied them by 1.5 times the regular hourly wage ($12.50 x 1.5 = $18.75). This equals $84.38. Lastly, you added the regular wages and the overtime wages together, which resulted in a total of $584.38.
However, you mentioned that Mary's cumulative wages were $27,675.13, which means there might be additional factors involved, such as bonuses or previous earnings. For the purpose of this explanation, we'll consider the total wages earned as $27,675.13.
Now, let's calculate the taxable wages for OASDI (Social Security) and Medicare:
1. OASDI:
- For 2021, the Social Security tax rate is 6.2% on the first $142,800 of earnings.
- To calculate the taxable wages for OASDI, subtract the Social Security wage base ($142,800) from the total wages earned ($27,675.13).
Taxable wages for OASDI: $27,675.13 - $142,800 = $0 (since $27,675.13 is less than the Social Security wage base).
2. Medicare:
- The Medicare tax rate is 1.45% on all earnings.
- Calculate the Medicare tax by multiplying the total wages earned ($27,675.13) by the Medicare tax rate (0.0145).
Taxable wages for Medicare: $27,675.13 x 0.0145 = $401.08
Therefore, the taxable wages for OASDI are $0, and the taxable wages for Medicare are $401.08.