Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with 7 & 8 please thank you! Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700

I need help with 7 & 8 please thank you!image text in transcribedimage text in transcribed

Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 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 5.4%. 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 August 18 $ 125,600 134,300 7,600 1,550 Current Week Income Tax Gross Pay Withholding $ 5,000 $ 355 3,400 64 1,600 43 2,000 34 In addition to gross pay, the company must pay one-half of the $70 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 your intermediate calculations and final answers to 2 decimal places.): Answer is not complete. Tax Amount 1) Employees' FICA Withholdings for Social Security Earnings Employee Subject to Tax Rate Tax Tax Rate 6.20% Dali $ 5,000.00 6.20% Trey 3,400.00 6.20% Kiesha 1,600.00 6.20% Chee 2,000.00 6.20% IS 310.00 210.80 99.20 124.00 Total $ 744.00 2) Employees' FICA Withholdings for Medicare Earnings Employee Subject to Tax Rate Tax Tax Amount Tax Rate 1.45% Dali 1.45% Is 72.50 Trey 1.45% 49.30 $ 5,000.00 3,400.00 1,600.00 2,000.00 Kiesha 1.45% 23.20 Chee 1.45% 29.00 Total $ 174.00 Tax Amount 3) Employer's FICA Taxes for Social Security Earnings Employee Subject to Tax Rate Tax Tax Rate 6.20% Dali $ 5,000.00 6.20% Trey 3,400.00 6.20% Is 310.00 210.80 Kiesha 1,600.00 6.20% 99.20 Chee 2,000.00 6.20% 124.00 Total $ 744.00 4) Employer's FICA Taxes for Medicare Earnings Employee Subject to Tax Tax Rate Tax Amount Tax Rate 1.45% 1.45% S Dali Trey 72.50 49.30 1.45% $ 5,000.00 3,400.00 1,600.00 2,000.00 1.45% 23.20 Kiesha Chee 1.45% 29.00 Total S 174.00 5) Employer's FUTA Taxes Earnings Employee Subject to Tax Tax Rate Tax Rate Tax Amount 0.60% 0.60% Dali 0.00 0.00 0,60% Trey Kiesha olololo 0.00 0.60% Chee 2,000.00 0.60% $ 12.00 Total S 12.00 Tax Rate Tax Amount 6) Employer's SUTA Taxes Earnings Employee Subject to Tax Tax Rate Dali $ 0.00 Trey 0.00 Kiesha 0.00 Chee 2,000.00 5.40% 5.40% 5.40% olololo 5.40% 5.40% S 108.00 108,00 Total S 7) Each Employee's Net (take-home) Pay Employee Dali Trey Kiesha Chee Total $ 5,000.00 s 3,400.00 $ 1,600.00 $ 2,000.00 $ 12,000.00 Gross Pay Income tax withholding FICA - Social Security 355.00 64.00 43.00 34.00 496.00 310.00 210.80 124.00 744.00 99.20 23.20 72.50 49.30 29.00 174.00 FICA - Medicare Health Insurance Net Pay 0.00 $ 0.00 Chee $ 2,000.00 8) Employer's Total Payroll-Related Expense for Each Employee. Employee Dali Trey Klesha Gross Pay $ 5,000.00 $ 3,400.00 $ 1,600.00 FICA - Social Security 310.00 210.80 99.20 FICA - Medicare 72.50 49.30 23.20 FUTA 0.00 0.00 0.00 SUTA 0.00 0.00 0.00 Health Insurance Total $ 12,000.00 744.00 174.00 124.00 29.00 12.00 12.00 108.00 108.00 0.00 0.00 Pension Total Payroll Expense $ 5,382.50 $ 3,660.10 S 1,722.40 $ 2,273.00 13,038.00

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

Accounting For Decision Making And Control

Authors: Jerold Zimmerman

10th International Edition

1260565475, 9781260565478

More Books

Students also viewed these Accounting questions