FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
Tim 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.
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Transcribed Image Text: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 Tim 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.
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