Madison Company has nine employees. FICA Social Security taxes are 6.2% of the first $106,800 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.8% 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 |
Steve S | $ 6,000 | Christina S | $156,800 | Dana W | $116,800 |
Tim V. | 60,000 | Michelle H | 106,800 | Stewart M | 36,800 |
Brent G | 87,000 | Kathleen K | 110,000 | Sankha B | 4,000 |
a.Prepare a table with the following column headings: Employee; Cumulative Pay; Pay Subject to FICA Social Security Taxes; Pay Subject to FICA Medicare Taxes; Pay Subject to FUTA Taxes; Pay Subject to SUTA Taxes. Compute the amounts in this table for each employee and total the columns.
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.)
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