Chapter 11, Problem 9E

Exercise 11-9 Computing payroll taxes P2 P3

Mest Company has nine employees. FICA Social Security taxes are 6.2% of the Erst SI 28.400 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 S7_: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
KenS............ $ 6,000 Michelle W........ $143,500 Loci K............ $130,900

TimV............. 40.400 MichaelM........ 106.900 Kitty 0............ 3G.900

Steve S........... 87,000 Zach P............ 123.400 John W........... 4,000

a. Prepare a table with the following six column headings. Compute the amounts in this table for each employee and then total the numerical columns.

		Pay Subject to	Pay Subject	Pay Subject	Pay Subject
	Cumulative	FICA Social	to FICA	to FUTA	to SUTA
Employee	Pay	Security	Medicare	Tones	Taxes

b. For the company, compute each total for FICA Social Security taxes. FICA Medicare taxes. FUTA taxes, and SUTA taxes. Him: Remember to include in those totals any employee share of taxes that the company must collect. Round amounts to cents.