Mester Company has 10 employees. FICA Social Security taxes are 6.2% of the first $117,000 paid to
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Mester Company has 10 employees. FICA Social Security taxes are 6.2% of the first $117,000 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. Cumulative pay for the current year for each of its employees follows. |
Employee | Cumulative Pay | Employee | Cumulative Pay | Employee | Cumulative Pay | |||
Ken S | $ | 6,000 | Ann T | $ | 146,500 | Lori K | $ | 119,500 |
Tim V | 60,200 | Kathleen K | 106,900 | Kitty O | 36,900 | |||
Steve S | 87,000 | Michelle H | 117,000 | John W | 4,000 | |||
a. | Compute the amounts in this table for each employee. (1) FICA Social Security (2) FICA Medicare (3) FUTA taxes (4) SUTA taxes |
b. | For the company, compute each total for: FICA Social Security taxes, FICA Medicare taxes, FUTA taxes, and SUTA taxes. (1) tax paid by employee (2) tax paid by employer |
Related Book For
Differential Equations and Linear Algebra
ISBN: 978-0131860612
2nd edition
Authors: Jerry Farlow, James E. Hall, Jean Marie McDill, Beverly H. West
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