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Federal Withholding Taxes Federal income taxes are withheld from gross pay on a pay-as-you-gosystem. The amount to withhold from each employee is determined after consideration of four factors: 1. the amount of gross pay 2. the taxpayer s ling status (married or single) 3. the number of exemptions claimed by the taxpayer, and 4. the payroll period. The employee s ling status and number of exemptions claimed is determined by referring to Form W-4, lled out by each employee when he or she began to work. An employee is entitled to one personal ex emption and one for his or her spouse and each dependent. Social Security Taxes (Federal Insurance Contributions Act FICA) The FICA tax helps pay for federal programs for old age and disability bene ts, Medicare, and insurance bene ts to survivors. During the work ing years of an employee, funds will be set aside from his or her earnings. When the employee s earnings cease because of disability, retirement, or death, the funds are made available to his or her dependents or survivors. A combined rate of 7.65 percent (subject to change as enacted by Congress) is imposed on both the employee and the employer. Thus, the total is 15.30 percent. The 7.65 percent is broken down into two parts: 6.2 percent for old-age, survivors, and disability insurance (OASDI) and 1.45 percent for hospital insurance (Medicare). The OASDI rate (6.2 percent) applies to wages within the OASDI wage base, which is $87,000 for 2003. The Medicare rate (1.45 percent) applies to all wages earned dur ing the year regardless of the amount earned.



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Fig. 5-33

Prove each of the following: (a) The opposite sides of a parallelogram are congruent (Principle 3). (b) If the opposite sides of a quadrilateral are congruent, then the quadrilateral is a parallelogram (Principle 8). (c) If two sides of a quadrilateral are congruent and parallel, the quadrilateral is a parallelogram (Principle 9). (d) The diagonals of a parallelogram bisect each other (Principle 6). (e) If the diagonals of a quadrilateral bisect each other, then the quadrilateral is a parallelogram (Principle 11).

(5.7)

Fig. 5-34

(a) BC (b) AB (c) AB (d) AB (e) m/B ( f ) m/1

60 120

29, m/2

The amounts withheld for either income tax or FICA represent a liability for the employer, as these amounts are required to be remitted to the Internal Revenue Service. The same is true for other withholdings, such as retirement contributions or union dues.

y (5.8)





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5.11. Provide the proofs requested in Fig. 5-35.

First Binary Number (IP Address) 0 0 1 1 Second Binary Number (Mask) 0 1 0 1 Bitwise AND Result 0 0 0 1

Fig. 5-35

5.12. Prove each of the following: (a) If the diagonals of a parallelogram are congruent, the parallelogram is a rectangle.

(5.9)

(b) If the diagonals of a parallelogram are perpendicular to each other, the parallelogram is a rhombus. (c) If a diagonal of a parallelogram bisects a vertex angle, then the parallelogram is a rhombus. (d) The diagonals of a rhombus divide it into four congruent triangles. (e) The diagonals of a rectangle are congruent. 5.13. Find x and y in each part of Fig. 5-36. (5.10)

State and Local Withholding Taxes Most states and some cities impose a tax on the gross earnings of each residential employee. These taxes are also withheld from the employee s pay and turned over periodically by the employer to the appropriate agency. All the deductions discussed so far have been mandatory. Often, through agreement with the employer, amounts will be withheld for re tirement plans, union dues, savings bonds, insurance, and other deduc tions.

Fig. 5-36

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5.14. Find x and y in each part of Fig. 5-37.

(5.11)

Fig. 5-37

5.15. If MP is the median of trapezoid ABCD in Fig. 5-38 (a) Find m if b (b) Find b if b (c) Find b if b 23 and b 46 and m 51 and m 15. 41. 62.

(5.12)

Fig. 5-38

Note!

(5.11 and 5.12)

5.16. Find x and y in each part of Fig. 5-39.

Fig. 5-39

5.17. In a right triangle (a) Find the length of the median to a hypotenuse whose length is 45. (b) Find the length of the hypotenuse if the length of its median is 35. 5.18. If the medians of nABC meet in D (a) Find the length of the median whose shorter segment is 7. (b) Find the length of the median whose longer segment is 20. (c) Find the length of the shorter segment of the median of length 42. (d) Find the length of the longer segment of the median of length 39. 5.19. Prove each of the following:

Therefore:

(5.13)

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