Mi Casa Restaurants of Las Cruces, New Mexico, has the following employees as of December 31: Annual Taxable Wages $36,300 $19,900 Employee Name Arianna Shelby Mark Gomez Cedric Wardly Eric Burgess Shionna Black Required: The company's SUTA tax rate is 4.25 percent and the wage base is $11,800. Mi Casa Restaurants FUTA tax rate of 6 percent is subject to a 5.4 percent reduction and applies to the first $7,000 of employee wages. What is the annual amount of FUTA and SUTA taxes due for each employee? (Round your answers for "SUTA Due" to 2 decimal places.) Employee Arianna Shelby Mark Gomez Cedric Wardly Eric Burgess Shionna Black $26,500 $33,880 $32,400 FUTA Due SUTA Due

Mi Casa Restaurants of Las Cruces, New Mexico, has the following employees as of December 31: Annual Taxable Wages $36,300 $19,900 Employee Name Arianna Shelby Mark Gomez Cedric Wardly Eric Burgess Shionna Black Required: The company's SUTA tax rate is 4.25 percent and the wage base is $11,800. Mi Casa Restaurants FUTA tax rate of 6 percent is subject to a 5.4 percent reduction and applies to the first $7,000 of employee wages. What is the annual amount of FUTA and SUTA taxes due for each employee? (Round your answers for "SUTA Due" to 2 decimal places.) Employee Arianna Shelby Mark Gomez Cedric Wardly Eric Burgess Shionna Black $26,500 $33,880 $32,400 FUTA Due SUTA Due

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 7E

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Payrex Co. has six employees. All are paid on a weekly basis. For the payroll period ending January 7, total employee earnings were 12,500, all of which were subject to SUTA, FUTA, Social Security, and Medicare taxes. The SUTA tax rate in Payrexs state is 5.4%, but Payrex qualifies for a rate of 2.0% because of its good record of providing regular employment to its employees. Other employer payroll taxes are at the rates described in the chapter. REQUIRED 1. Calculate Payrexs FUTA, SUTA, Social Security, and Medicare taxes for the week ended January 7. 2. Prepare the journal entry for Payrexs payroll taxes for the week ended January 7. 3. What amount of payroll taxes did Payrex save because of its good employment record?
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