Mest Company has 9 employees. FICA Social Security taxes are 6.2% of the first $

Question

Mest Company has 9 employees. FICA Social Security taxes are 6.2% of the first $118,500 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 Pay Employee Cumulative Pay Ken S Tim V Steve S $5,100 63,700 90,500 Employee Cumulative Pay Michael M$150,000 Erin C Kyle B Lori K Kitty o John W $123,000 40,400 7,500 110,400 120,500 a. Compute the amounts in this table for each employee Pay Subject to FICA Social Security Pay Subject to FICA Medicare Pay Subject to FUTA Taxes Pay Subject to SUTA Taxes Cumulative Employee Ken S Tim V Steve S Michael M Erin C Kyle B Lori K Kitty John W Totals Pay 5,100 63,700 90,500 150,000 110,400 120,500 123,000 40,400 7,500 S 711,100

Explanation / Answer

Pay subject to Pay subject to Pay subject to Pay subject to Cumulative FICA Social FICA to FUTA to SUTA Employee Pay Security Medicare Taxes Taxes Ken S $5,100 $316.20 $73.95 $30.60 $275.40 Tim V $63,700 $3,949.40 $923.65 $382.20 $378 Steve S $90,500 $5,611.00 $1,312.25 $543.00 $378 Michael M $150,000 $7,347.00 $2,175.00 $900.00 $378 Erin C $110,400 $6,844.80 $1,600.80 $662.40 $378 Kyle B $120,500 $7,347.00 $1,747.25 $723.00 $378 Lori K $123,000 $7,347.00 $1,783.50 $738.00 $378 Kutty O $40,400 $2,504.80 $585.80 $242.40 $378 John W $7,500 $465.00 $108.75 $45.00 $378 Totals $711,100 $41,732.20 $10,310.95 $4,266.60 $3,299.40 Tax Paid by Employee Tax Paid by Employer Total Tax FICA Social Security taxes $41,732.20 $41,732.20 FICA Medicare taxes $10,310.95 $10,310.95 FUTA taxes $4,266.60 $4,266.60 SUTA taxes $3,299.40 $3,299.40

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