1.

Solve the following problem using 6.2%, up to $113,700, for social security tax and 1.45%, no wage limit, for Medicare tax.

As payroll manager for Freeport Enterprises, it is your task to calculate the monthly social security and Medicare withholdings for the following employees.

Employee	Year-to-Date Earnings	Current Month	Social Security	Medicare
Graham, C.	$14,800	$1,540	$	$

2.

Dave O'Bannon earns $41,450 annually as a line supervisor for Redwood Manufacturers.

a. If the SUTA tax rate is 5.4% of the first $7,000 earned in a year, how much SUTA tax must Redwood pay each year for Dave?

$

b. If the FUTA tax rate is 6.0% of the first $7,000 earned in a year minus the SUTA tax paid, how much FUTA tax must the company pay each year for Dave?

$