Summary - Payroll Assignment 2 - Calculate Payroll Taxes

Description

To complete this assignment you will need paper, pencil, a calculator, and completed the Quiz 1 assignment calculations.

Round your answers to the nearest hundredth, using 2 decimals and cents. For example, enter $100 would be entered as 100.00. Do not use the $ sign.

Below is a partial payroll register for Harrowing Consulting Firm for the week ending in June 30. Assumed tax rates are as follows:

FICA represents the Social Security & Medicare amounts combined.

• The Social Security tax rate is 6.2 percent. Taxable earnings for Social Security are based on the first $142,800

• The Medicare tax rate is 1.45 percent. Taxable earnings for Medicare are based on all earnings.

SUTA

• State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee.

FUTA

• Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee.

	Earning			FICA	FUTA and SUTA Calculations
Employee Name	Beginning Earnings (A)	Current Period Earnings (Fill-in from above) (B)	Ending Cumulative Earnings (A+B)	FICA (Social Security & Medicare)	SUTA	FUTA	Total Amount of Payroll Tax to be paid by employer
Jada, T.	42,000	2,000	44,000
Lauren, F.	5,440	760	6,200
William, M.	16,800	731	17,531
Monica B.	17,920	640	18,560

Quiz Details

Calculate SUTA. Enter your answer below in the Answer Box.

Round your answers to the nearest hundredth, using 2 decimals and cents. For example, enter $100 would be entered as 100.00. Do not use the $ sign.

FICA

• The Social Security tax rate is 6.2 percent of earning. Taxable earnings for Social Security are based on the first $142,800.
• The Medicare tax rate is 1.45 percent. Taxable earnings for Medicare are based on all earnings.

SUTA

• State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee.

FUTA

• Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee.

	Earnings			FICA	FUTA & SUTA Calculations
Employee Name	Beginning Earnings (A)	Current Period Earnings (Fill-in from above) (B)	Ending Cumulative Earnings (A+B)	FICA (Social Security & Medicare)	SUTA	FUTA	Total Amount of Payroll Tax to be paid by employer
Jada, T.	42,000	2,000	44,000

Your Answer: