Use the following tax rates, ceiling and maximum taxes: Employee and Employer OASDI: 6.20% $128,400 $796080
Employee* and Employer HI: 1.45% No limit No maximum
Self-employed OASDI: 12.4% $128,400 $15,921,60
Self-employed HI: 2.9% No limit No maximum

Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows:
1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate).
2. If the third decimal place is 5 or more, round to the next higher cent.
3. If the third decimal place is less than 5, drop the third decimal place.
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.

On August 1, Huff (part-time waitress) reported on Form 4070 the cash tips of $158.50 that she received in July. During August. Huff was paid wages of $550 by her employer. Determine the following:

a. The amount of social security taxes that the employer should withhold from Huffs wages during August:
b. The amount of the employer's social security taxes on Huff's wages and tips during August: