Question

Problem 1-16 Points Fishing Guides Co. has four 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. Also, for the first $7,000 paid to each employee, the company's FUTA taxes are 0.6% and SUTA taxes are 1.75%. The company is preparing its payroll calculations for the week ended September 30. Payroll records show the following information for the company's employees. Name Total YTD Pay through 9/23 Gross Pay for 9/30 pay period 1. Ahmed $127,400 $2,500 2. Carlos 115,485 1,515 3. June 5,650 475 4. Marie 22,200 1,000 Compute each of the following: Employee Pay Subject to Pay Subject to Pay Subject to Pay Subject to FICA Social FICA Medicare FUTA Taxes SUTA Taxes Security Ahmed Carlos June Marie Extra Credit Calculate: 1. Employer's total FICA taxes for Social Security 2. Employer's total FICA taxes for Medicare. 3. Employer's FUTA taxes. 4. Employer's SUTA taxes.

Answer 1

Answering the fishing guides company following calculating are under:-

THE COMPANY PREPARING PAYROLL RECORD SHOW THE FOLLOWING INFORMATION

NAME OF EMPLOYEE	TOTAL YTD PAY THROUNH 9/23	GROSS PAY FOR 9/30	PAY SUBJECT TO FICA SOCIAL SECURITY	PAY SUBJECT TO FICA MEDICARE	PAY SUBJECT TO FUTA TAXES	PAY SUBJECT TO SUTA TAXES
AHMED	127400	2500	0	36.25	764.4	2229.5
CARLOS	115485	1515	0	21.96	692.91	2020.98
JUNE	5650	475	0	6.88	33.9	98.87
MARIE	22200	1000	0	14.5	133.2	388.5
TOTAL	270735	5490	0	79.59	1457.31	4737.86

ANS.-(1)=EMPLOYER TOTAL FICA TAXES FOR SOCIAL SECURITY=0(NO EMPLOYEE MORE THAN $128400 PAID THATIS SOCIAL SECURITY IS 0)

(2)=EMPLOYERS TOTAL FICA TAXES FOR MEDICALES=$79.59(THIS CALCULATION OF GROSS PAY)

(3)=EMPLOYERS FUTA TAXES ARE=$1457.31(CALCULATED OF 0.6% OF TOTAL YTD PAYMENT)

(4)=EMPLOYERS SUTA TAXES ARE=$4737.86 (CALCULATED OF 1.75% OF TOTAL YTD PAYMENT)