Narrative 9-2
Use the Information Below to Solve the Following

question 109

Short Answer

Narrative 9-2
Use the information below to solve the following problems:
$$\begin{array} { l l l } & \text { Tax Rate } & \text { Wage Base } \\\text { Social security } & 6.2 \% & \$ 128,400 \\\text { Medicare } & 1.45 \% & \text { no limit } \\\text { FUTA } & .6 \% & \$ 7,000 \\\text { SUTA } & 5.4 \% & \$ 7,000\end{array}$$
-Refer to Narrative in your text 9-2. The SUTA rate for Montego Corporation is 5.4% and its FUTA rate is 6.0% less the 5.4% SUTA credit; .6%. If its monthly payroll is $153,720.00 and none was for payments to employees in excess of the $7,000.00 wage base, then what are the total FUTA and SUTA taxes for the payroll?

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Definitions:

Tolerance

The allowable deviation in a manufacturing or production process, defining the range within which output is considered acceptable.

Nominal Specification

The stated or targeted value for a parameter in a design or process, serving as a benchmark for quality control.

Statistical Process Control

A methodology applied to monitor and control a process to ensure that it operates at its fullest potential, using statistical techniques.