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Mission Company Has Three Employees The Compary Is Subject to the Following Taxes

question 81

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Mission Company has three employees:  Gross Pay through July  Gross Pay for August  Smith $3,200$1,000 Cain 25,8003,500 Clark 94,60013,100\begin{array}{llr}&\text { Gross Pay through July }&\text { Gross Pay for August }\\\text { Smith } & \$ 3,200 & \$ 1,000 \\\hline \text { Cain } & 25,800 & 3,500 \\\hline \text { Clark } & 94,600 & 13,100\end{array}
The compary is subject to the following taxes:  Tax  Rate  Applied To  FICA-Social Security 6.20% First $106,800 FICA-Medicare 1.45 All gross pay  FUTA .80 First $7,000 SUTA 5.40 First $7,000\begin{array} { l c l } \text { Tax } & \text { Rate } & \text { Applied To } \\\text { FICA-Social Security } & 6.20 \% & \text { First } \$ 106,800 \\\text { FICA-Medicare } & 1.45 & \text { All gross pay } \\\text { FUTA } & .80 & \text { First } \$ 7,000 \\\text { SUTA } & 5.40 & \text { First } \$ 7,000\end{array} What is the amount that Mission Company will withhold from Smith's August gross pay?


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