Please explain how to get each number. If you dont feel like explaining, please

Question

Please explain how to get each number. If you dont feel like explaining, please do not answer. In a really fast pace class and need help.

8. Mission Company has three employees Gross Pay through July Gross Pay for August Smi th $3,200 $1,000 ai 25,800 3,500 Clar 94,600 13,100 The company is subject to the following taxes Tax Rate Applied To 6.20 First FICA-Social Security FICA-Medicare FUTA SUTA S106,800 1.45 80 5.40 All gross pay First $7,000 First $7,000 What is Mission Company's total payroll tax expense for August? Wages subject to tax FICA-SSFICA- MedicareFUTA SUTA Total Total Rate Payroll Taxes Exp

Explanation / Answer

Gross pay for August A FICA-SS FICA-Medicare FUTA SUTA Total Smith $1,000 $1,000 $1,000 $1,000 $1,000 (as gross pay till august is $4200 which is under limit for FICA-SS and FUTA,SUTa) cain 3500 3500 3500 0 0 Clark 13100 12200 13100 0 0 (106800-94600) Total T $16,700 $17,600 $1,000 $1,000 Rate R 6.20% 1.45% 0.80% 5.40% Payroll tax expenses T*R $1,035.40 $255.20 $8.00 $54.00 $1,352.60 working Smith (as gross pay till august is $4200 which is under limit for FICA-SS and FUTA,SUTa) Cain As The Gross pay till August exceeds $7000 hence no wages are applicable for FUTA and SUTa If any doubt please comment.

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