9th payment:
OASDI: 496 dollars
HI: 116 dollars
17th payment:
OASDI: 303.80 dollars
HI: 116.00 dollars
24th payment
HI: 116.00 dollars
Additional 0.9%: 178 dollars
Explanation:
FICA taxes:
OASDI 132,900 celling
HI: 1.45% celling 200,000 for single
up to this point the tax increase by 0.90%
8,000 x 9th payment: 72,000 below celling
OASDI: 8,000 x 6.20% = 496
HI: 8,000 x 1.45% = 116
8,000 x 17th payment: 136,000 Is above celling for OASDI
we just pay for the difference
previous earnings: 136,000 - 8,000 = 128,000
celling: 132,900
132,900 - 128,000 = 4,900
OASDI: 4,900 x 6.20% = 303,8
HI: 8,000 x 1.45% = 116
8,000 x 24th payment: 192,000 above celling for OASDI
OASDI: zero
HI: 8,000 x 1.45% = 116
Year end bonus: 100,000 accumulated 292,000 above HI celling
the diffrence will pay additional 0.9%
292,000 - 250,000 = 42,000
additional 0.9% = 42,000 x 0.9% = 378
year-end bonus: Bonuses are taxable compensation subject to income tax withholding and FICA. They’re treated as supplemental wages.