Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45%

image text in transcribed
image text in transcribed
Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $137,700 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. Employee Cumulative Pay Employee Cumulative Pay Employee Cumulative Pay Ken 5 $ 6,000 Julie W $ 151,500 Christina 5 $ 141,800 Tin V 48,400 Michael M 114,900 Kitty 0 44,900 Steve S 95,000 Zach R 137,700 John W 5,000 a. Compute the amounts in this table for each employee. b. For the company, compute each total for FICA Social Security taxes, FICA Medicare taxes, FUTA taxes, and SUTA taxes. Hint Remember to include in those totals any employee share of taxes that the company must collect. Complete this question by entering your answers in the tabs below. Required A Required B Compute the amounts in this table for each employee. Employee Pay Subject to Pay Subject to Pay Subject to Pay Subject to Cumulative FICA Social Pay FICA Medicare FUTA Taxes SUTA Taxos Security Kan S $ 6,000 Tim v 48,400 Steve S 95,000 Julie W 151,500 Michael M 114.900 Zach R 137,700 Christina S 141,800 Kitly o 44,900 John W 5,000 Totals $ 745,200 $ 0 $ 0 $ 0 For the company, compute each total for FICA Social Security taxes, FICA Medicare taxes, FUTA taxes, and SUTA taxes. Hint: Remember to include in those totals any employee share of taxes that the company must collect. (Round your final answers to 2 decimal places.) Tax Paid by Tax Pald by Employee Employer Total Tax FICA Social Security taxes FICA Medicare taxes FUTA taxes SUTA taxes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Materiality In Financial Reporting An Integrative Perspective

Authors: Francesco Bellandi

1st Edition

178743737X, 9781787437371

More Books

Students also viewed these Accounting questions

Question

Discuss global compensation practices.

Answered: 1 week ago

Question

Summarize global staffing practices.

Answered: 1 week ago

Question

Discuss the evolution of global business.

Answered: 1 week ago