Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $127,200 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.

a. Prepare a table with the following six column headings. Compute the amounts in this table for each employee and then total the numerical columns.

b. For the company, compute each total for FICA Social Security taxes, FICA Medicare taxes, FUTA taxes, and SUTA taxes.

Transcribed Image Text:

Enployee Employee Cumulative Pay Employee Cumulative Pay Cumulative Pay $129,700 36,900 4,000 Ken S. Tim V... Steve S....... Lori K. Michelle W. Michael M. Zach R. $ 6,000 42,800 $143,500 106,900 Kitty 0. John W. . 87,000 127,200 Pay Subject to Pay Subject Pay Subject Cumulative Pay to FICA Medicare to FUTA Taxes Pay Subject to SUTA Taxes FICA Soclal Employee Security