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.)

Question

Business

Josephine Molina

1 June, 12:51

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.)

+2

Answers (1)

Know the Answer?

Trystan Huang · Answer 1

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