Question

Mest Company has 9 employees. FICA Social Security taxes are 6.2% of the first $118,500 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	$	5,700	Michael M	$	153,000	Lori K	$	126,000
Tim V		66,700	Erin C		113,400	Kitty O		43,400
Steve S		93,500	Kyle B		123,500	John W		10,500

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. (Round your final answers to 2 decimal places.)

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Answer 1

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	$5,700	$5,700	$5,700	$5,700	$5,700
Tim V	$66,700	$66,700	$66,700	$7,000	$7,000
Steve S	$93,500	$93,500	$93,500	$7,000	$7,000
Michelle M	$153,000	$118,500	$153,000	$7,000	$7,000
Eric C	$113,400	$113,400	$113,400	$7,000	$7,000
Kyle B	$123,500	$118,500	$123,500	$7,000	$7,000
Lori K	$126,000	$118,500	$126,000	$7,000	$7,000
Kitty O	$43,400	$43,400	$43,400	$7,000	$7,000
John W	$10,500	$10,500	$10,500	$7,000	$7,000
Totals	$735,700	$688,700	$735,700	$61,700	$61,700
	Tax paid by Employee	Tax paid by Employer	Total
FICA Social Security Tax Payable ($688,700 x 6.2%)	$42,699.40	$42,699.40	$85,398.80
FICA Medicare Tax Payable ($735,700 x 1.45%)	$10,667.65	$10,667.65	$21,335.30
FUTA Taxes Payable ($61,700 x 0 .6%)		$370.20	$370.20
SUTA Taxes Payable ($61,700 x 5.4%)		$3,331.80	$3,331.80