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.
| 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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