For this activity, you are the sole owner of a small printing business, known as New Bloomsbury. Over the past year, New Bloomsbury's business has grown unexpectedly, especially given the rise of digital publishing, and you were forced to respond to the increase in demand.

In response, you hired two new employees to help you complete customer orders, and today it's time to prepare paychecks for your new employees and you. You know that a certain amount needs to be withheld from each employee's pay to cover payroll taxes for Social Security and Medicare. Based on what you learned in this unit, you can calculate FICA (12.4%, with 6.2% paid by the employee and 6.2% paid by the employer) and MEDIFICA (2.9%, with 1.45% paid by the employee and 1.45% paid by the employer) for your two employees and you.

Here's how much each of you were paid for the current payroll period:

Your pay: $3,000

Employee 1's pay: $1,600

Employee 2's pay: $1,300

Remember, if you are self-employed, you must withhold the total percentage of the payroll taxes from your income (essentially, you pay both the employee and the employer's contributions).

Use complete sentences to answer the following questions. Please show your work.

How much must you withhold from your own paycheck to cover each of the following payroll taxes?

• FICA
• MEDIFICA

How much must you withhold from Employee 1's paycheck to cover payroll taxes for each of the following?

• FICA
• MEDIFICA

How much must you withhold from Employee 2's paycheck?

• FICA
• MEDIFICA

Submit your completed work in the word-processing application of your choice.