Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $137,700 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 Ken S Tin V Steve S Cumulative Pay $ 5,800 47,400 94,000 Employee Julie W Michael M Zach R Cumulative Pay $ 150,500 113,900 137,700 Employee Christina S Kitty o John W Cumulative Pay $ 141,600 43,900 4,000 a. Compute the amounts in this table for each employee. b. For the company, compute each total for FICA Social Security taxes, FICA Medicare taxes, FUTA taxes, and SUTA taxes. Hint Remember to include in those totals any employee share of taxes that the company must collect.
Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $137,700 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 Ken S Tin V Steve S Cumulative Pay $ 5,800 47,400 94,000 Employee Julie W Michael M Zach R Cumulative Pay $ 150,500 113,900 137,700 Employee Christina S Kitty o John W Cumulative Pay $ 141,600 43,900 4,000 a. Compute the amounts in this table for each employee. b. For the company, compute each total for FICA Social Security taxes, FICA Medicare taxes, FUTA taxes, and SUTA taxes. Hint Remember to include in those totals any employee share of taxes that the company must collect.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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