MRI Company has one employee. FICA Social Security taxes are 6.20% of the first
ID: 2417375 • Letter: M
Question
MRI Company has one employee. FICA Social Security taxes are 6.20% of the first $106,800 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For MRI, its FUTA taxes are 0.80% and SUTA taxes are 2.90% of the first $7,000 paid to its employee.
Compute MRI’s amounts for each of the above four taxes as applied to the employee’s gross earnings for September under situation (a). (Round your answers to 2 decimal places. Omit the "$" sign in your response)
Compute MRI’s amounts for each of the above four taxes as applied to the employee’s gross earnings for September under situation (b). (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places. Omit the "$" sign in your response)
Compute MRI’s amounts for each of the above four taxes as applied to the employee’s gross earnings for September under situation (c). (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places. Omit the "$" sign in your response)
MRI Company has one employee. FICA Social Security taxes are 6.20% of the first $106,800 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For MRI, its FUTA taxes are 0.80% and SUTA taxes are 2.90% of the first $7,000 paid to its employee.
Explanation / Answer
1
Calculation of MRI’s taxes for September under situation (a):
Tax
FICA—Social Security (1500*6.20%)
$ 93.00
FICA—Medicare (1500*1.45%)
$ 21.75
FUTA (1500*0.80%)
$ 12.00
SUTA (1500*2.90%)
$ 43.50
2
Calculation of MRI’s taxes for September under situation (b):
Tax
FICA—Social Security (2900*6.20%)
$ 179.80
FICA—Medicare (2900*1.45%)
$ 42.05
FUTA (2900*0.80%)
$ 23.20
SUTA (2900*2.90%)
$ 84.10
3
Calculation of MRI’s taxes for September under situation (c):
Tax
FICA—Social Security (11200*6.20%)
$ 694.40
FICA—Medicare (11200*1.45%)
$ 162.40
FUTA (7000*0.80%)
$ 56.00
SUTA (7000*2.90%)
$ 203.00
1
Calculation of MRI’s taxes for September under situation (a):
Tax
FICA—Social Security (1500*6.20%)
$ 93.00
FICA—Medicare (1500*1.45%)
$ 21.75
FUTA (1500*0.80%)
$ 12.00
SUTA (1500*2.90%)
$ 43.50
2
Calculation of MRI’s taxes for September under situation (b):
Tax
FICA—Social Security (2900*6.20%)
$ 179.80
FICA—Medicare (2900*1.45%)
$ 42.05
FUTA (2900*0.80%)
$ 23.20
SUTA (2900*2.90%)
$ 84.10
3
Calculation of MRI’s taxes for September under situation (c):
Tax
FICA—Social Security (11200*6.20%)
$ 694.40
FICA—Medicare (11200*1.45%)
$ 162.40
FUTA (7000*0.80%)
$ 56.00
SUTA (7000*2.90%)
$ 203.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.