Selected information from the payroll register of Joanie's Boutique for the week ended September 14, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings.         Taxable Earnings

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
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ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 3SEA: CALCULATION OF TAXABLE EARNINGS AND EMPLOYER PAYROLL TAXES AND PREPARATION OF JOURNAL ENTRY Selected...
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Selected information from the payroll register of Joanie's Boutique for the week ended September 14, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings.

        Taxable Earnings


Employee Name
Cumulative Pay
Before Current
Earnings

Current
Gross Pay

Unemployment
Compensation

Social
Security
Jordahl, Stephanie       $6,600      $1,190      
Keesling, Emily   6,150      1,070      
Palmer, Stefan   55,200      2,410      
Soltis, Robin   54,300      2,280      
Stout, Hannah   29,050      2,030      
Xia, Xu   126,530      2,850      

1.  Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes.

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