Question

Merger Co. has 10 employees, each of whom earns $2,200 per month and has been employed since January 1. FICA Social Security taxes are 6.2% of the first $117,000 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.

Answer 1

		Merger Company
		Number of Employees	10
		Amount paid to each employee per month	2200
		FICA-Medicare taxes	1.45%
		FICA-Social Security taxes	6.20%
		Federal Unemployment taxes	0.60%
		State Unemployment taxes	5.40%
	Date	General, Journal	Debit	Credit
	March 31st	Payroll Tax Expense	$              3,003.00
		To FICA-Mericare taxes(10*2200*1.45%)		$                319.00
		To FICa-Social Security taxes(10*2200*6.2%)		$             1,364.00
		To Federal Unemployment taxes(10*2200*.6%)		$                132.00
		To State Unemployment taxes(10*2200*5.4%)		$             1,188.00