Question

Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $128,400 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 $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	$	6,300	Michelle W	$	153,000	Lori K	$	140,400
Tim V		49,900	Michael M		116,400	Kitty O		46,400
Steve S		96,500	Zach R		137,900	John W		13,500

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.

Answer 1

Employee	Cumulative Pay	Pay subject to FICA Social Security	Pay subject to FICA Medicare	Pay subject to FUTA Taxes	Pay subject to SUTA Taxes
Ken S	$              6,300.00	$                  6,300.00	$                  6,300.00	$                  6,300.00	$                  6,300.00
Tim V	$            49,900.00	$                49,900.00	$                49,900.00	$                  7,000.00	$                  7,000.00
Steve S	$            96,500.00	$                96,500.00	$                96,500.00	$                  7,000.00	$                  7,000.00
Michelle W	$          153,000.00	$              128,400.00	$              153,000.00	$                  7,000.00	$                  7,000.00
Michael M	$          116,400.00	$              116,400.00	$              116,400.00	$                  7,000.00	$                  7,000.00
Zach R	$          137,900.00	$              128,400.00	$              137,900.00	$                  7,000.00	$                  7,000.00
Lori K	$          140,400.00	$              128,400.00	$              140,400.00	$                  7,000.00	$                  7,000.00
Kitty O	$            46,400.00	$                46,400.00	$                46,400.00	$                  7,000.00	$                  7,000.00
John W	$            13,500.00	$                13,500.00	$                13,500.00	$                  7,000.00	$                  7,000.00
	$ 760,300.00	$    714,200.00	$    760,300.00	$      62,300.00	$      62,300.00

	Employer's Share	Employee's Share	Total
FICA Social Security taxes	$ 44,280.40	$ 44,280.40	$ 88,560.80
FICA Medicare taxes	$ 11,024.35	$ 11,024.35	$ 22,048.70
FUTA taxes	$      433.80		$      433.80
SUTA taxes	$   3,904.20		$   3,904.20

	Employer's Share	Employee's Share	Total
FICA Social Security taxes	=714200*6.2%	=714200*6.2%	=SUM(J3:K3)
FICA Medicare taxes	=760300*1.45%	=760300*1.45%	=SUM(J4:K4)
FUTA taxes	=72300*0.6%		=SUM(J5:K5)
SUTA taxes	=72300*5.4%		=SUM(J6:K6)