est Company has nine employees. FICA Social Security taxes are 6.2% of the first $132,900 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. EmployeeCumulative PayEmployeeCumulative PayEmployeeCumulative PayKen S$5,800Julie W$150,500Christina S$137,900Tim V 47,400Michael M 113,900Kitty O 43,900Steve S 94,000Zach R 135,400John W 11,000 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. Required ARequired BCompute the amounts in this table for each employee.Pay Subject to Pay SubjectPay SubjectPay SubjectCumulativeFICA Socialto FICAto FUTAto SUTAEmployeePaySecurityMedicareТаxesTaxesKen S$5,800Tim V47,400Steve S94,000Julie W150,500Michael M113,900Zach R135,400Christina S137,900Kitty O43,900John W11,000Totals$739,800%24 Required ARequired BFor the company, compute each total for FICA Social Security taxes, FICA Medicare taxes, FUTA taxes, and SUTA(Round your final answers to 2 decimal places.)Tax Paid byEmployeeTax Paid byEmployerTotal TaxFICA Social Security taxesFICA Medicare taxesFUTA taxesSUTA taxes

Answered: est Company has nine employees. FICA…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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est Company has nine employees. FICA Social Security taxes are 6.2% of the first $132,900 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 S	$	5,800	Julie W	$	150,500	Christina S	$	137,900
Tim V		47,400	Michael M		113,900	Kitty O		43,900
Steve S		94,000	Zach R		135,400	John W		11,000

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.

Required A
Required B
Compute the amounts in this table for each employee.
Pay Subject to Pay Subject
Pay Subject
Pay Subject
Cumulative
FICA Social
to FICA
to FUTA
to SUTA
Employee
Pay
Security
Medicare
Таxes
Taxes
Ken S
$
5,800
Tim V
47,400
Steve S
94,000
Julie W
150,500
Michael M
113,900
Zach R
135,400
Christina S
137,900
Kitty O
43,900
John W
11,000
Totals
$
739,800
%24

Required A
Required B
For the company, compute each total for FICA Social Security taxes, FICA Medicare taxes, FUTA taxes, and SUTA
(Round your final answers to 2 decimal places.)
Tax Paid by
Employee
Tax Paid by
Employer
Total Tax
FICA Social Security taxes
FICA Medicare taxes
FUTA taxes
SUTA taxes

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