Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Intra Corporation, a geoduck fishing company located by the Narrows Bridge in Tacoma, WA , has four employees. FICA Social Security taxes are 6 .

image text in transcribed
Intra Corporation, a geoduck fishing company located by the Narrows Bridge in Tacoma, WA, 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.
\table[[,,Current Week,],[,Gross Pay through,Income Tax],[Name,August 18,Gross Pay,Withholding,],[Dali,$124,100,$4,800,$68,],[Trey,133,900,3,800,298,],[Kiesha,9,100,1,000,56,],[Chee,3,050,1,000,45,]]
In addition to gross pay, the company must pay one-half of the $100 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.
Note: Round your intermediate calculations and final answers to 2 decimal places.
Employees' FICA Withhoidings for Medicare
\table[[Employee,\table[[Earnings],[Subject to Tax]],Tax Rate,Tax Amount,],[Tax Rate,,1.45%,,],[Dall,$4,800.00,1.45%,$,69.60],[Trey,3,800.00,1.45%,55.10,],[Kiesha,1,000.00,1.45%,14.50,],[Chee,1,000.00,1.45%,14.50,],[,,Total,$,153.70
image text in transcribed

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 Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

5th edition

9780470418239, 470239808, 9780470239803, 470418230, 978-1118128169

More Books

Students also viewed these Accounting questions

Question

Explain how to evaluate a potential franchise.

Answered: 1 week ago

Question

Explain what a franchise is and how it operates.

Answered: 1 week ago