Mester Company has 10 employees. F CA Social Security taxes are 6.2% of the firs
ID: 2497579 • Letter: M
Question
Mester Company has 10 employees. F CA 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 Pa Employee Cumulative Pa Employee Cumulative Pa Ken S $149,000 $6,500 Ann T Lori K $122,000 Tim V 39,400 Kathleen K 109,400 62,700 Kitty O Steve S John W 6,500 89,500 Michelle H 119,500 a. Compute the amounts in this table for each employee. Pay Subject to Pay Subject Pay Subject Pay Subject to FUTA to SUTA Cumulative FICA Social to FICA Taxes Taxes Employee Pay Security Medicare S 6,500 Ken S Tim V 62,700 89,500 Steve S Ann T 149,000 Kathleen K 109,400 119,500 Michelle H Lori 122,000 39,400 Kitty O 6500 John W 704500 TotalsExplanation / Answer
Mester Company S.NO. Employees Cumulative Pay Pay Subject to FICA Social Security Pay Subject to FICA Medicare Pay Subject to FUTA Taxes Pay Subject to SUTA Taxes 1 Ken S 6500 403 94.25 39 351 2 Tim V 62700 3887.4 909.15 42 378 3 Steve S 89500 5549 1297.75 42 378 4 Ann T 149000 7254 2160.5 42 378 5 Kathleen K 109400 6782.8 1586.3 42 378 6 Michell H 119500 7254 1732.75 42 378 7 Lori K 122000 7254 1769 42 378 8 Kitty O 39400 2442.8 571.3 42 378 9 John W 6500 403 94.25 39 351 704500 41230 10215.25 372 3348 Note:Instead of ten employees details are given only 9 employees. Social security tax along with medicare tax are referred to as FICA. Social Security tax is paid on first 117000 to each employee but medicare is based on salary & wages of employee. FUTA & SUTA are total 6%. FUTA=0.6% & SUTA =5.4%