Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help me fix what I got wrong. If the answer is highlighted red with an X it is wrong. Problem 9-3A Payroll expenses, withholdings, and

Help me fix what I got wrong. If the answer is highlighted red with an "X" it is wrong. image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Problem 9-3A Payroll expenses, withholdings, and taxes LO P2, P3 Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $118,500 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 0.6% 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. Name Dali Trey Kiesha Chee Gross Pay through Aug. 18 $117,400 117,600 6,900 1,250 Current Week Income Tax Gross Pay Withholding $2,000 $ 284 900 145 450 39 400 30 In addition to gross pay, the company must pay two-thirds of the $60 per employee weekly health insurance; each employee pays the remaining one-third. 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 your intermediate calculations and final answers to 2 decimal places.): Answer is complete but not entirely correct. Tax Amount 1) Employees' FICA Withholdings for Social Security Earnings Employee Subject to Tax Rate Tax Dali $ 1,100.00 6.20% Trey 900.00 6.20% Kiesha 450.00 6.20% Chee 400.00 6.20% 68.20 55.80 27.90 24.80 Tax Amount 1) Employees' FICA Withholdings for Social Security Earnings Employee Subject to Tax Rate Tax Dali $ 1,100.00 6.20% Trey 900.00 6.20% Kiesha 450.00 6.20% 68.20 55.80 27.90 Chee 400.00 6.20% 24.80 Total $ 176.70 Tax Amount 2) Employees' FICA Withholdings for Medicare Earnings Employee Subject to Tax Rate Tax Dali $ 2,000.00 1.45% Trey 900.00 1.45% Kiesha 450.00 1.45% $ 29.00 13.05 6.53 Chee 400.00 1.45% 5.80 Total S 54.38 3) Employer's FICA Taxes for Social Security Earnings Employee Subject to Tax Rate Tax Dali $ 1,100.00 6.20% Tax Amount $ 68.20 900.00 6.20% 55.80 Trey Kiesha 450.00 6.20% 27.90 Chee 400.00 6.20% 24.80 Total $ 176.70 4) Employer's FICA Taxes for Medicare Earnings Employee Subject to Tax Tax Rate Tax Amount 4) Employer's FICA Taxes for Medicare Earnings Employee Subject to Tax Rate Tax Amount Tax Dali 1.45% $ 29.00 $ 2,000.00 900.00 Trey 1.45% 13.05 Kiesha 450.00 1,45% 6.53 Chee 400.00 1.45% 5.80 Total $ 54.38 Tax Rate Tax Amount 5) Employer's FUTA Taxes Earnings Employee Subject to Tax Dali 0.00 Trey 0.00 Kiesha 0.00 0.60% 0.60% Chee 400.00 Total $ 0.00 Tax Rate Tax Amount 6) Employer's SUTA Taxes Earnings Employee Subject to Tax Dali $ 0.00 Trey 0.00 Kiesha 0.00 2.15% 2.15% Chee 400.00 Total $ 0.00 7) Each Employee's Net (take-home) Pay Employee Dali Trey Kiesha Chee Total $ 2,000.00 IS 900.00 IS Gross Pay Income tax 450.00 IS 400.00 $ 3,750 284 145 200 10 mployer's SUTA Taxes Earnings sloyee Subject to Tax $ 0.00 Tax Rate Tax Amount 2.15% 0.00 2.15% ha 0.00 % e 400.00 Total $ 0.00 ach Employee's Net (take-home) Pay sloyee Dali Trey Kiesha Chee Total $ 2,000.00 $ 900.00 $ 450.00 $ 400.00 $ 3,750.00 284.00 145.00 39.00 30.00 498.00 38 Pay me tax holding 1- Social Security 1- Medicare 55.80 27.90 24.80 176.70 68.20 29.00 13.05 6.53 5.80 54.38 Ith Insurance 20.00 20.00 20.00 20.00 80.00 Pay $ 1,598.80 666.15 $ 356.58 $ 319.40 $ 2,940.93 Kiesha Chee Total stal Payroll Related Expense for Each Employee sloyee Dali Trey ss Pay $ 2,000.00 $ 900.00 1- Social Security 68.20 55.80 - Medicare 29.00 13.05 $ 450.00 $ 400.00 $ 3.750.00 176.70 27.90 24.80 6.53 5.80 54.38 0.00 0.00 0.00 0.00 0.00 A 0.00 0.00 0.00 0.00 0.00 Ith Insurance 40.00 40.00 40.00 40.00 160.00 sion 160.00 72.00 36.00 300.00 32.00 502.60 I Payroll Expense $ 2,297.20 $ 1,080.85 $ 560.43 $ $ 4,441.08

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Construction Contractors AICPA Audit And Accounting Guide

Authors: American Institute Of CPAs

1st Edition

0870519751, 978-0870519758

More Books

Students also viewed these Accounting questions

Question

Explain what is meant by the terms unitarism and pluralism.

Answered: 1 week ago