Question

6.2% of the first $128,400 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 $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	$	5,600	Michelle W	$	149,500	Lori K	$	136,900
Tim V		46,400	Michael M		112,900	Kitty O		42,900
Steve S		93,000	Zach R		134,400	John W		10,000

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.

Answer 1

a)
Employees	Cumulative Pay	Pay Subject to FICA Social Security	Pay Subject to FICA Medicare	Pay Subject to FUTA Taxes	Pay Subject to SUTA Taxes
Ken S	$ 5,600	$ 5,600	$ 5,600	$ 5,600	$ 5,600
Tim V	$ 46,400	$ 46,400	$ 46,400	$7,000	$7,000
Steve S	$ 93,000	$ 93,000	$ 93,000	$7,000	$7,000
Michelle W	$ 149,500	$128,400	$ 149,500	$7,000	$7,000
Michael M	$ 112,900	$ 112,900	$ 112,900	$7,000	$7,000
Zach R	$ 134,400	$128,400	$ 134,400	$7,000	$7,000
Lori K	$ 136,900	$128,400	$ 136,900	$7,000	$7,000
Kitty O	$ 42,900	$ 42,900	$ 42,900	$7,000	$7,000
John W	$ 10,000	$ 10,000	$ 10,000	$7,000	$7,000
Totals	$ 731,600	$ 696,000	$ 731,600	$ 61,600	$ 61,600

(b)
Particulars	Tax paid by Employee	Tax paid by Employer	Total
FICA Social Security Tax Payable	$ 43,152 ($ 696,000 x 6.2%)	$ 43,152 ($ 696,000 x 6.2%)	$ 86,304
FICA Medicare Tax Payable	$ 10,608.20 ($ 731,600 x 1.45%)	$ 10,608.20 ($ 731,600 x 1.45%)	$ 21,216.40
FUTA Taxes Payable	-	$ 369.60 ($ 61,600 x 0 .6%)	$ 369.60
SUTA Taxes Payable		$ 3,326.40 ($61,600 x 5.4%)	$ 3,326.40