1. Complete the following word problems.

a) Calculate Social Security taxes, Medicare taxes, and FIT for Joy Royce. Joys company pays her a monthly salary of $10,000. She is single and claims 1 deduction. Before this payroll, Joys cumulative earnings were $118,000. (Social Security maximum is 6.2% on $118,500, and Medicare is 1.45%.) Calculate FIT by the percentage method.

b) Jim Brewer, owner of Arrow Company, has three employees who earn $200, $800, and $950 a week. Assume a state SUTA rate of 5.1%. What will Jim pay for state and federal unemployment taxes for the first quarter?