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.

    • 5 years ago
    Madison Company
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      madison_company.xlsx