Exercise 9-11 (Algo) Computing payroll taxes LO P2, P3 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 Ken S Tim V Steve S Cumulative Pay $ 6,400 50,400 97,000 Employee Julie W Michael M Zach R Cumulative Pay $ 153,500 116,900 137,700 Employee Christina S Kitty O Cumulative P $ 142,200 46,900 John W 6,800 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 Cumulative Pay Pay Subject to FÍCA Social Pay Subject to Pay Subject to Pay Subject to FICA Medicare FUTA Taxes SUTA Taxes Security Ken S $ 6,400 Tim V 50,400 Steve S 97,000 Julie W 153,500 Michael M 116,900 Zach R 137,700 Christina S 142,200 Kitty O 46,900 John W 6,800 Totals $ 757,800 $ 0 0 0 0

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Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 7SPB: CALCULATING PAYROLL TAXES EXPENSE AND PREPARING JOURNAL ENTRY Selected information from the payroll...
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Exercise 9-11 (Algo) Computing payroll taxes LO P2, P3
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
Ken S
Tim V
Steve S
Cumulative Pay
$ 6,400
50,400
97,000
Employee
Julie W
Michael M
Zach R
Cumulative Pay
$ 153,500
116,900
137,700
Employee
Christina S
Kitty O
Cumulative P
$ 142,200
46,900
John W
6,800
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
Cumulative
Pay
Pay Subject to
FÍCA Social
Pay Subject to Pay Subject to Pay Subject to
FICA Medicare
FUTA Taxes
SUTA Taxes
Security
Ken S
$
6,400
Tim V
50,400
Steve S
97,000
Julie W
153,500
Michael M
116,900
Zach R
137,700
Christina S
142,200
Kitty O
46,900
John W
6,800
Totals
$
757,800 $
0
0
0
0
Transcribed Image Text:Exercise 9-11 (Algo) Computing payroll taxes LO P2, P3 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 Ken S Tim V Steve S Cumulative Pay $ 6,400 50,400 97,000 Employee Julie W Michael M Zach R Cumulative Pay $ 153,500 116,900 137,700 Employee Christina S Kitty O Cumulative P $ 142,200 46,900 John W 6,800 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 Cumulative Pay Pay Subject to FÍCA Social Pay Subject to Pay Subject to Pay Subject to FICA Medicare FUTA Taxes SUTA Taxes Security Ken S $ 6,400 Tim V 50,400 Steve S 97,000 Julie W 153,500 Michael M 116,900 Zach R 137,700 Christina S 142,200 Kitty O 46,900 John W 6,800 Totals $ 757,800 $ 0 0 0 0
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