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

Question

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

Quizplus · Accepted Answer

Smith's payroll taxes include FICA-Social Security (6.2% of $1,000), FICA-Medicare (1.45% of $1,000), FUTA (0.8% of $1,000 since total is under $7,000), and SUTA (5.4% of $1,000 since total is under $7,000). Total = $62 (Social Security) + $14.50 (Medicare) + $8 (FUTA) + $54 (SUTA) = $138.50.

Mission Company Has Three Employees What Is Mission Company's Amount for Payroll Taxes for Smith