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Payroll taxes

Mary Graham and Paula Moore are partners engaged in operating the M&P Doll Shop, which has employed the following persons since the beginning of the year:

V. Hoffman (general office worker).........$1,700 per month
A. Drugan (saleswoman).....................$15,000 per year
G. Beiter (stock clerk)....................$180 per week
S. Egan (deliveryman)......................$220 per week
B. Lin (cleaning and maintenance, part time.$160 per week

Graham and Moore are each paid a weekly salary allowance of $950.

The doll shop is located in a state that requires compensation contributions of employers of one or more individuals. The company is subject to state contributions at a rate of 3.1% for wages not in excess of $8,100. Compute each of the following amounts based upon the 41st weekly payroll period.

(a) Amount of FICA taxes (OASDI and HI) to be withheld from the earnings of each person.
(b) Amount of the employer's Fica taxes for the weekly payroll
(c) Amount of state unemployment contributions for the weekly payroll
(d) Amount of the net Futa tax on the payroll
(e) Total amount of the employer's payroll taxes for the weekly payroll

I did a and b please correct if I am wrong, I need help with c,d and e

a)............. OASDI.... HI
M. Graham...$58.90... $13.78
P. Moore ...$58.90... $13.78
V. Hoffman.. $24.32....$5.69
A. Drugan ..$17.88.....$4.18
G. Beiter ...$11.16.....$2.61
S. Egan.....$13.64......$3.19
B. Lin......$9.92.......$2.32

b)
Amount of the employer's FICA taxes for the weekly payroll.......$194.75(OASDI) and $45.54 (HI)

Solution Preview

Please see the attached file.

a) Amount of FICA taxes (OASDI and HI) to be withheld from the earnings of each person.

Taxable OASDI HI
Earnings (6.2%) (1.45%)
V. Hoffman $392.31 $24.32 $5.69
A. Drugan 288.46 17.88 4.18
G. Beiter 180.00 11.16 2.61
S. ...

Solution Summary

The solution explains how to calculate the amount of payroll taxes

$2.19