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

Employees Cumulative Pay Pay Subject to FICA Social Security Pay Subject to FICA Medicare Pay Subject to FUTA Taxes Pay Subject to SUTA Taxes Ken S $5,100 $5,100 $5,100 $5,100 $5,100 Tim V $63,700 $63,700 $63,700 $7,000 $7,000 Steves S $90,500 $90,500 $90,500 $7,000 $7,000 Michael M $150,000 $118,500 $150,000 $7,000 $7,000 Eric C $110,400 $110,400 $110,400 $7,000 $7,000 Kyle B $120,500 $118,500 $120,500 $7,000 $7,000 Lori K $123,000 $118,500 $123,000 $7,000 $7,000 Kitty O $40,400 $40,400 $40,400 $7,000 $7,000 John W $7,500 $7,500 $7,500 $7,000 $7,000 Totals $711,100 $673,100 $711,100 $61,100 $61,100 Tax paid by Employer Tax paid by Employee Total Social Security Tax Payable ($673,100 x 6.2%) $41,732.2 $41,732.2 $83,464.4 Medicare Tax Payable ($711,100 x 1.45%) $10,310.95 $10,310.95 $20,621.9 Feta Tax Payable (61100 x .6%) $366.6 Suta Tax Payable (61100 x 5.4%) $3,299.4

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