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Zion, Inc. has one employee who has worked January - June of the current year. The employee is single, paid weekly, and claims two
Zion, Inc. has one employee who has worked January - June of the current year. The employee is single, paid weekly, and claims two allowances on her W-2. The company is in a state that has no state income taxes. The FICA Social Security tax rate is 6.2% on the first $110,800 of wages and the FICA Medicare tax rate is 1.45% on all wages. Zion, Inc.'s FUTA tax rate is 0.8% on the first $7,000 of wages and their SUTA tax rate is 2.3% on the first $8,000 of wages. The employee's earnings thus far are as follows: Gross pay Jan-May Gross pay for June $6,700 $1,040 a) Use the information above and the IRS tax table (click to pop open) to calculate all of the taxes that should be withheld from the employees paycheck and her net pay for June. Round values to 2 decimal places if needed. Gross Pay Federal Withholding FICA-SS FICA-Medicare Net Pay b) Use the information provided to calculate the payroll taxes that Zion must pay on the employee's behalf for the month of June FICA Medicare FUTA SUTA Total ER taxes
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