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Exercise 11-9 Computing payroll taxes P2 P3
Mest Company has nine employees. FICA Social Security taxes are 6.2% of the Erst SI 28.400 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 S7:000 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
KenS............ $ 6,000 Michelle W........ $143,500 Loci K............ $130,900
TimV............. 40.400 MichaelM........ 106.900 Kitty 0............ 3G.900
Steve S........... 87,000 Zach P............ 123.400 John W........... 4,000
a. Prepare a table with the following six column headings. Compute the amounts in this table for each employee and then total the numerical columns.
Pay Subject to | Pay Subject | Pay Subject | Pay Subject | ||
Cumulative | FICA Social | to FICA | to FUTA | to SUTA | |
Employee | Pay | Security | Medicare | Tones | Taxes |
b. For the company, compute each total for FICA Social Security taxes. FICA Medicare taxes. FUTA taxes, and SUTA taxes. Him: Remember to include in those totals any employee share of taxes that the company must collect. Round amounts to cents.
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