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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.

Gross Pay through August Gross Pay for September

a. $ 6,400 $800

b. 18,200 2,100

c. 100,500 8,000

a) Compute MRI's amounts for each of the above four taxes as applied to the employee's gross earnings for September under situation (a).

b) Compute MRI's amounts for each of the above four taxes as applied to the employee's gross earnings for September under situation (b).

c) Compute MRI's amounts for each of the above four taxes as applied to the employee's gross earnings for September under situation (c).

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  • Category:- Accounting Basics
  • Reference No.:- M9417908

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