Mission Company has three employees: $\begin{array}{l}
&\text { Gross Pay through July}&\text { Gross Pay for August }\
\text { Smith } & \$ 3,200 & \$ 1,000 \
\text { Cain } & 25,800 & 3,500 \
\text { Clark } & 94,600 & 13,100
\end{array}$
$$\begin{array} { l c l }
\text { Tax } & \text { Rate } & \text { Applied To } \
\text { FICA-Social Security } & 6.20 \% & \text { First } \$ 106,800 \
\text { FICA-Medicare } & 1.45 & \text { All gross pay } \
\text { FUTA } & .80 & \text { First } \$ 7,000 \
\text { SUTA } & 5.40 & \text { First } \$ 7,000
\end{array}$$ What are Mission Company's total August payroll taxes for Smith?

Question

Mission Company has three employees: $\begin{array}{l}
&\text { Gross Pay through July}&\text { Gross Pay for August }\
\text { Smith } & \$ 3,200 & \$ 1,000 \
\text { Cain } & 25,800 & 3,500 \
\text { Clark } & 94,600 & 13,100
\end{array}$
$$\begin{array} { l c l } 
\text { Tax } & \text { Rate } & \text { Applied To } \
\text { FICA-Social Security } & 6.20 \% & \text { First } \$ 106,800 \
\text { FICA-Medicare } & 1.45 & \text { All gross pay } \
\text { FUTA } & .80 & \text { First } \$ 7,000 \
\text { SUTA } & 5.40 & \text { First } \$ 7,000
\end{array}$$ What are Mission Company's total August payroll taxes for Smith?

Quizplus · Accepted Answer

Smith's August gross pay is $1,000. FICA-Social Security tax is 6.20% of $1,000 = $62. FICA-Medicare tax is 1.45% of $1,000 = $14.50. FUTA and SUTA do not apply as Smith's total gross pay for the year exceeds $7,000. Total = $62 + $14.50 = $76.50.

Mission Company Has Three Employees What Are Mission Company's Total August Payroll Taxes for Smith