MH 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. At year-end, the cumulative pay for the current year for each of its employees follows

Employee	Cumulative Pay	Employee	Cumulative Pay
Ken S.	$ 6,000	Lori K.	$121,000
Tim V.	60,200	Kitty O.	56,900
Steve S.	87,000	John W.	84,000
Michael M	143,500	Michelle N.	118,500
Kyle B	106,900

a. Using table on next page, compute and enter the amount in this table for each

employee and then total the numerical columns for the year.

Employee	Cumulative pay	Pay subject to FICA social security	Pay subject to FICA Medicare	Pay subject to FUTA	Pay subject to SUTA taxes
Ken S	6,000	6,000	6,000	6,000	6,000
Tim V	60,200	60,200	60,200	7,000	7,000
Steve S	87,000	87,000	87,000	7,000	7,000
Michael M	143,500	118,500	143,500	7,000	7,000
Kyle B	106,900	106,900	106,900	7,000	7,000
Lori K	121,000	118,500	121,000	7,000	7,000
Kitty O	36,900	36,900	36,900	7,000	7,000
John W	4,000	4,000	4,000	4,000	4,000
Michelle N.	118,500	118,500	118,500	7,000	7,000
Total	684,000	656,500	684,000	59,000	59,000

1. Using the cumulative based information compiled in Part a, for the employer/companys share of payroll taxes, compute the yearly total for: FICA Social Security taxes, FICA Medicare taxes, FUTA taxes, and SUTA taxes by employee. (Please round to nearest cents).

Employee	FICA Social Security taxes	FICA Medicare taxes	FUTA taxes	SUTA taxes
Ken S	372	87	36	324
Tim V	3,732.40	872.90	42	378
Steve S	5,394	1,261.50	42	378
Michael M	7,347	2,080.75	42	378
Kyle B	6,627.80	1,550.05	42	378
Lori K	7,347	1,754.50	42	378
Kitty O	2,287.80	535.05	42	378
John W	248	58	24	216
Michelle N	7,347	1,718.25	42	378
Totals	81,344	19,836	354	3,186

Prepare journal entry for employers share of payroll taxes in total (all employees) for the last pay period, i.e., the 26th one (i.e., assume 26 pay periods per year); (HINT: one pay period equals 1/26 of the cumulative yearly amounts) Assume cumulative pay is for 26 pay periods; prepare journal entry for total employees salaries payable (gross and net) and payroll tax withholdings for the last two-week pay period of the fiscal year. (hint cumulative amounts need to be adjusted by 1/26).

Please also assume a 20% Federal Income tax on the gross cumulative pay and a 5% Virginia tax withholding on behalf of the employees is collected each pay period; Finally, assume each employee has a portion of their share of their medical insurance premium collected by the company, which is equal to $24 per pay period. The journal entry should include all the relevant items given.