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.

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.

b. For the company, compute each total for: FICA Social Security taxes, FICA Medicare taxes, FUTA taxes, and SUTA taxes.

Transcribed Image Text:

Employee Cumulative Pay Cumulative Pay 6,000 60,200 87,000 Employee Michael M. Erin C Kyle B. Employee Cumulative Pay Ken S Tim V Steve S. $143,500 106,900 118,500 Lorl K Kitty O John W $121,000 36,900 4,000 Cumulative Pay Pay Subject to FICA Soclal Security Pay Subject to FICA Medicare Pay Subject to FUTA Taxes Pay Subject to SUTA Taxes Employee