Question

1.

Solve the following problem using 6.2%, up to $113,700, for social security tax and 1.45%, no wage limit, for Medicare tax.

As payroll manager for Freeport Enterprises, it is your task to calculate the monthly social security and Medicare withholdings for the following employees.

Employee |
Year-to-Date Earnings |
Current Month |
Social Security |
Medicare |

Graham, C. | $14,800 | $1,540 | $ | $ |

2.

Dave O'Bannon earns $41,450 annually as a line supervisor for Redwood Manufacturers.

a. If the SUTA tax rate is 5.4% of the first $7,000 earned in a year, how much SUTA tax must Redwood pay each year for Dave?

$

b. If the FUTA tax rate is 6.0% of the first $7,000 earned in a year minus the SUTA tax paid, how much FUTA tax must the company pay each year for Dave?

$

Answer #1

1.

Employe | Year-to-date | Current | Social | Medicare | |

Earnings | Month | Security | |||

Graham, C. | 14800 | 1540 | 95.48 | 22.33 | |

Since the year-to-date earnings are below $117,000 | |||||

social security tax is deductible on the full amount of $1,540. |

2.

a. $378.00

b. $42.00

Working:

a. SUTA payable (5.4%) | 378.00 |

(5.4% of 7,000) | |

b. FUTA (6% - SUTA) | 42.00 |

(6% of 7,000) - 378 |

1.
Solve the following problem using 6.2%, up to $113,700, for
social security tax and 1.45%, no wage limit, for Medicare tax.
What are the social security and Medicare withholdings for an
executive whose annual gross earnings are $118,430?
Social security: $
Medicare: $
2.
Use the percentage method of income tax calculation to complete
the following payroll roster.
Employee
Marital
Status
Withholding
Allowances
Pay
Period
Gross
Earnings
Income Tax
Withholding
Farley, D.
M
4
Biweekly
$1,849
$

BMX Company has one employee. FICA Social Security taxes are
6.2% of the first $128,400 paid to its employee, and FICA Medicare
taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and
SUTA taxes are 5.4% of the first $7,000 paid to its employee.
Gross Pay through
August 31
Gross Pay for September
a.
$
6,600
$
500
b.
2,100
2,200
c.
122,300
8,200
Compute BMX’s amounts for each of these four taxes as applied to...

BMX Company has one employee. FICA Social Security taxes are
6.2% of the first $128,400 paid to its employee, and FICA Medicare
taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and
SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross
Pay through August 31 Gross Pay for September a. $ 6,700 $ 400 b.
2,150 2,250 c. 122,400 8,300 rev: 05_16_2019_QC_CS-168714 Compute
BMX’s amounts for each of these four taxes as...

[The following information applies to the questions
displayed below.]
BMX Company has one employee. FICA Social Security taxes are 6.2%
of the first $128,400 paid to its employee, and FICA Medicare taxes
are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA
taxes are 5.4% of the first $7,000 paid to its employee.
Gross Pay through
August 31
Gross Pay for September
a.
$
6,500
$
900
b.
2,050
2,150
c.
122,200
8,100
a)
Tax
September...

66A) An employee earned $62,100 during the year working for an
employer. The FICA tax rate for Social Security is 6.2% of the
first $118,500 of employee earnings per calendar year and the FICA
tax rate for Medicare is 1.45% of all earnings. The current FUTA
tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment
taxes are applied to the first $7,000 of an employee's pay. What is
the amount of total unemployment taxes the employee...

BMX Company has one employee. FICA Social Security taxes are
6.2% of the first $127,200 paid to its employee, and FICA Medicare
taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 3.1% and
SUTA taxes are 2.9% of the first $7,000 paid to its employee.
Gross Pay through August 31
Gross Pay for September
a.
$
5,200
$
2,400
b.
2,500
2,800
c.
119,600
8,700
Compute BMX’s amounts for each of these four taxes as applied to...

An employer has one employee who earned $3,000 his first month
of employment. The employee’s federal income tax withholding (FITW)
is $400, and the employee has voluntary monthly deductions of $125
for health insurance and $25 for union dues. The FICA tax rate for
Social Security is 6.2% and the FICA tax rate for Medicare is
1.45%. The employer's FUTA tax rate is 0.6% and the SUTA tax rate
is 5.4%. (Note: The limit for FICA Social Security is $128,400...

1. The chief executive officer earns $10,100 per month. As of
May 31, her gross pay was $50,500. The tax rate for Social Security
is 6.2% of the first $128,400 earned each calendar year and the
FICA tax rate for Medicare is 1.45% of all earnings. The current
FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both
unemployment taxes are applied to the first $7,000 of an employee’s
pay. What is the amount of FICA-Social Security...

BMX Company has one employee. FICA Social Security taxes are
6.2% of the first $128,400 paid to its employee, and FICA Medicare
taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and
SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross
Pay through August 31 Gross Pay for September a. $ 5,500 $ 2,300 b.
2,500 2,600 c. 123,100 9,000 rev: 05_16_2019_QC_CS-168714 Assuming
situation (a), prepare the employer’s September 30 journal entries...

BMX Company has one employee. FICA Social Security taxes are
6.2% of the first $128,400 paid to its employee, and FICA Medicare
taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and
SUTA taxes are 5.4% of the first $7,000 paid to its employee.
Gross Pay through
August 31
Gross Pay for September
a.
$
5,200
$
2,400
b.
2,350
2,450
c.
122,800
8,700
Compute BMX’s amounts for each of these four taxes as applied to...

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