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Payroll
Say someone is paid a semi monthly salary of 6800. I am tryinig to compute the OASDI for the 16th paycheck. Could you help me out here. I know if it was the 9th paycheck, it would be the 6800 x 6.2% = $421.60. I just need help how you compute it for the 16th paycheck.
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1 Answer
Since the limit for wages on Soc Sec is $106,800. The total for the 15th check YTD should be 6800 X 15 checks = 102,000. So, they only need 4,800 to get to the limit (106,800 - 102,000 = 4,800) Your answer is 4,800 X 6.2% = 297,60 withheld on the 16th check.
Also, once you take 297,60, the YTD withheld should be 6,621.60 and you would not take any more of this tax through the end of the year. It would start over again January 1st of the next year.
The calculation I have done is pending that there are not any pretax benefits that are excluded from Soc Sec tax. You didn't mention that part.
Regards,
Sheryle
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