Question

Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $127,200 paid...

Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $127,200 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 Employee Cumulative Pay
Ken S $ 6,000 Michelle W $ 143,500 Lori K $ 129,700
Tim V 42,800 Michael M 106,900 Kitty O 36,900
Steve S 87,000 Zach R 127,200 John W 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.

Homework Answers

Answer #1
Pay Subject to
6.2% of first 127200
Pay Subject Pay Subject Pay Subject
Employee Cumm Pay FICA Social Security to FICA [email protected]% to FUTA Taxes @ 0.6% to SUTA Tax 5.4% of First 7000
Ken S $6,000 $372 $87.00 $36.0 $324.0
Tim V 42,800 $2,653.60 $620.60 $256.8 $378.0
Steve S 87,000 $5,394.00 $1,261.50 $522.0 $378.0
Michelle W 143,500 $7,886.40 $2,080.75 $861.0 $378.0
Michael M 106,900 $6,627.80 $1,550.05 $641.4 $378.0
Zach R 127,200 $7,886.40 $1,844.40 $763.2 $378.0
Lori K 129,700 $7,886.40 $1,880.65 $778.2 $378.0
Kitty O 36,900 $2,287.80 $535.05 $221.4 $378.0
John W 4,000 $248.00 $58.00 $24.0 $216.00
Totals $684,000 $41,242.40 $9,918 $4,104 $3,186
Part-2
Tax Paid by Employer % of total
FICA Social Security $41,242 70.56%
FICA Medicare $9,918.00 16.97%
FUTA Taxes $4,104 7.02%
SUTA Taxes $3,186 5.45%
Total $58,450 100.00%
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