Calculate Payrex FUTA, SUTA, and Social Security

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Problem - Payrex Co. has six employees. All are paid on a weekly basis. For the payroll period ending January 7, total employee earnings were $12,500, all of which were subject to SUTA, FUTA, Social Security, and Medicare taxes. The SUTA tax rate in Payrex's state is 5.4%, but Payrex qualifies for a rate of 2.0% because of its good record of providing regular employment to its employees. Other employer payroll taxes are at the rates described in the chapter.

Required - Calculate Payrex's FUTA, SUTA, Social Security, and Medicare taxes for the week ended January 7.

Reference no: EM132721106

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