Paloma Co. Stars has four employees. FICA Social Security taxes are 6.2% of the first $ 110,100
Question:
Paloma Co. Stars has four employees. FICA Social Security taxes are 6.2% of the first $ 110,100 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $ 7,000 paid to each employee, the company’s FUTA taxes are 0.8% and SUTA taxes are 2.15%. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the company’s four employees.
In addition to gross pay, the company must pay one-half of the $ 60 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employee’s gross pay (at no cost to employees) to a pension fund. Required Compute the following for the week ended August 25 (round amounts to the nearest cent):
1. Each employee’s FICA withholdings for Social Security.
2. Each employee’s FICA withholdings for Medicare.
3. Employer’s FICA taxes for Social Security.
4. Employer’s FICA taxes for Medicare.
5. Employer’s FUTA taxes.
6. Employer’s SUTA taxes.
7. Each employee’s net (take-home) pay.
8. Employer’s total payroll- related expense for eachemployee.
Step by Step Answer:
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta