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 $7,000 paid to each employee. Cumulative pay for the current year for each of its employees follows.EmployeeCumulative PayEmployeeCumulative PayEmployeeCumulative PayKen S$ 6,200Julie W$ 144,500Christina S$ 140,400Tim V41,400Michael M107,900Kitty O37,900Steve S88,000Zach R137,700John W5,000 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.

To compute the total taxes for Mest Company, we need to calculate the FICA Social Security taxes,…

Answered: Mest 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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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	Cumulative Pay	Employee	Cumulative Pay	Employee	Cumulative Pay
Ken S	$ 6,200	Julie W	$ 144,500	Christina S	$ 140,400
Tim V	41,400	Michael M	107,900	Kitty O	37,900
Steve S	88,000	Zach R	137,700	John W	5,000

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.

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