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On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $22,760 of
On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $22,760 of office salaries and $65,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $12,860 of federal income taxes, $1,340 of medical insurance deductions, and $840 of union dues. No employee earned more than $7,000 in this first period. Required. 1.1 Calculate below the amounts for each of these four taxes of Regis Company. Regis's merit rating reduces its state unemployment tax rate to 4% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimal places.) Regis Company's: Tax FICA-Social Security FICA-Medicare FUTA SUTA January 8 Earnings Subject to Tax Tax Rate Tax Amount 88,600 88,600 88,600 88,600 6.20% 1.45% 0.60% 4.00% 5,493.20 1,284.70 531.60 3,544.00
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