Question

Picture Perfect Physician’s has 5 employees. FICA Social Security taxes are 6.2% of the first $118,500 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 are as follows. Compute the amounts in the table for each employee and then total the numerical columns.

Employee
Cumulative Pay
Pay subject to FICA- S.S.
6.2% (First $118,000)
Pay subject to FICA-Medicare 1.45%
Pay subject to FUTA Taxes 0.6% Pay subject to SUTA Taxes 5.4% (First $7,000)

Mary $6,800
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Zoe $10,500
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Greg $8,400
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Ann $66,000
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Tom $4,700
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Totals
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Answer 1

Employee Mary Zoe Greg Ann Tom

Cumulative Pay $6,800 $10,500 $8,400 $66,000 $4,700

Pay subject to FICA S.S. $421.60 $651.00 $520.80 $4092.00 $291.40

6.2%, (First $118,000)

Pay subject to FICA Medicare $98.60 $152.25 $121.80 $957.00 $68.15

1.45% of gross

Pay subject to FUTA Taxes $40.80 $63.00 $50.40 $396.00 $28.20

0.6%

Pay subject to SUTA Taxes $367.20 $567.00 $453.60 $3564.00 $253.80

5.4% (First $7000)

Totals $928.20 $1,433.25 $1,146.60 $9,009.00 $641.55

Explanation:

Answer 2

Employee Mary Zoe Greg Ann Tom

Cumulative Pay $6,800 $10,500 $8,400 $66,000 $4,700

Pay subject to FICA S.S. $421.60 $651.00 $520.80 $4092.00 $291.40
6.2%, (First $118,000)

Pay subject to FICA Medicare $98.60 $152.25 $121.80 $957.00 $68.15
1.45% of gross

Pay subject to FUTA Taxes $40.80 $63.00 $50.40 $396.00 $28.20
0.6%

Pay subject to SUTA Taxes $367.20 $567.00 $453.60 $3564.00 $253.80
5.4% (First $7000)

Totals $928.20 $1,433.25 $1,146.60 $9,009.00 $641.55