MRI Company has one employee. FICA Social Security taxes are 6.2% of the first $

Question

MRI Company has one employee. FICA Social Security taxes are 6.2% 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 0.8% and SUTA taxes are 2.9% 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 6.2% 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 0.8% and SUTA taxes are 2.9% of the first $7,000 paid to its employee.

Explanation / Answer

FUTA and SUTA are only paid on the first $7,000. Since the employee has already earned $6,400, only the next $600 will be taken into account.

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