CALCULATION OF TAXABLE EARNINGS AND EMPLOYER PAYROLL TAXES, AND PREPARATION OF JOURNAL ENTRY Selected information from the payroll register of Howard's Cutlery for the week ended October 7, 20--, is presented below. Social Security tax is 6.2% on the first $ 128,400 of earnings for each employee. Medicare tax is 1.45% on gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings. Taxable Earnings Cumulative Pay Current Before Current Gross Unemployment Social Employee Name Earnings Pay Compensation Security Carlson, David J. $ 6,635 $ 950 Delgado, Luisa 6,150 1,215 Lewis, Arlene S. 54,375 2,415 Nixon, Robert R. 53,870 1,750 Shippe, Lance W. 24,830 1,450 Watts, Brandon Q. 127,000 3,120