Question

Any amounts that should be blank must have a zero (0)!

For each employee listed below, determine the employer’s tax liability for the payroll period, as well as the totals for each employee and for each tax. Use the following tax rates.

Social Security, 6.2%, with a maximum taxable earnings of $118,500.

Medicare, 1.45%, with no cut-off.

State Unemployment, 5.4%, with a maximum taxable earnings of 7,000.

Federal Unemployment, .6%, with a maximum taxable earnings of 7,000.

Name	Beginning Cumul-ative	Current Pay	Ending Cumul-ative	Amount of Tax				Total Taxes on Employer
				Soc. Sec. Taxes	Medi-care Taxes	SUTA Taxes	FUTA Taxes
Alice	116,900	2,300
Bob	48,000	2,000
Cindy	6,800	1,080
Dale	127,800	1,580

Answer 1

Based on the information available, we can calculate the total amount of Employer taxes as follows:-

				Amount of Taxes
Employee	Beginning Cumulative earnings	Current Pay	Ending Cumulative earnings	Social Security Tax	Medicare	State Unemployment taxes( upt 7000)	Federal Unemployment tax(upto 7000)	Total taxes on employer
		A		C = A * 6.2%	D = A * 1.45%	F=A*5.4%	B = A*0.6%	F=B+C+D+E
Alice	1,16,900.00	2,350.00	1,19,250	99.20	34.08	-	-	133.28
Bob	48,000.00	2,100.00	50,100	130.20	30.45	-	-	160.65
Cindy	6,800.00	3,320.00	10,120	205.84	48.14	10.80	1.20	265.98
Dale	1,27,800.00	1,100.00	1,28,900	-	15.95	-	-	15.95
Total	2,99,500.00	8,870.00	308,370.00	435.24	128.62	10.80	1.20	575.86

2.) For Alice, only $1,600 ($118,500 - $116,900) will be subject to Social security tax since the maximum limit is upto $118,500 as mentioned in the question.1.) With respect to FUTA and SUTA taxes, with exception to Cindy who is eligible for FUTA and SUTA taxes on $200 of her current pay, the other employees will not be eligible because they have earned cumulatively more than $7,000 during the payroll period.  

3.) For Dale there is no Social security tax because the limit on it has already been reached based on the cumulative payroll figures provided in the question.