Madison Company
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.