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9 January, 16:00

On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned

$21,760 of office salaries and $70,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes

at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $13,360 of federal income taxes, $1,440 of medical insurance

deductions, and $900 of union dues. No employee earned more than $7,000. in this first period.

Required:

1.1 Calculate below the amounts for each of these four taxes of Regis Company. Regis's merit rating reduces its state unemployment

tax rate to 5% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.60%. (Round your answers to 2 decimal

places.)

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Answers (1)
  1. 9 January, 19:02
    0
    Employeer taxes:

    SUTA 92,600 x 5.00% = 4630

    FUTA 92,600 x 0.60% = 555.6

    Medicare 92,600 x 1.45% = 1,342.7

    SS 92,600 x 6.20% = 5,741.2

    TOTAL: 12,269.5

    Explanation:

    We are asked for the amount paid by Regis Company in concept of payroll taxes for the first week of the year:

    SUTA: 5%

    FUTA: 0.60%

    Medicare 1.45%

    Social Security: 6.20%

    We add up each department wages:

    21,760 office + 70,840 sales = 92,600

    And apply the payroll taxes rates:

    Employeer taxes:

    SUTA 92,600 x 5.00% = 4630

    FUTA 92,600 x 0.60% = 555.6

    Medicare 92,600 x 1.45% = 1,342.7

    SS 92,600 x 6.20% = 5,741.2
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