Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help finding what I'm missing Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee,

Need help finding what I'm missing

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 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. Current Week Name Dali Trey Kiesha Chee Gross Pay through Aug. 18 $ 127,300 127,500 6,900 1,250 Gross Pay $2,000 988 450 400 Income Tax Withholding $ 284 145 39 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 not complete. Answer is not complete. 1) Employees' FICA Withholdings for Social Security Earnings Employee Subject to Tax Rate Tax Tax Amount Tax Rate 6.20% Dali $ 1,100.00 6.20% 68.20 Trey 900.00 6.20% 55.80 Kiesha 450.00 6.20% 27.90 Chee 400.00 6.20% 24.80 Total S 176.70 2) Employees' FICA Withholdings for Medicare Earnings Employee Subject to Tax Rate Tax Tax Amount 1.45% Tax Rate 1.45% $ 2,000.00 S Dali 29.00 900.00 1.45% Trey 13.05 450.00 1.45% Kiesha 6.53 Chee Total $ 48.58 4) Employer's FICA Taxes for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate 1.45% Dali $ 2,000.00 1.45% IS 29.00 Trey 900.00 1.45% 13.05 Kiesha 450.00 1.45% 6.53 Chee 400.00 1.45% 5.80 Total $ 54.38 6) Employer's SUTA Taxes Earnings Employee Subject to Tax Tax Rate Tax Amount Tax Rate 5.40% > Dali $ 0.00 5.40% Trey 0.00 5.40% Kiesha 100.00 5.40% $ 5.40 Chee 400.00 5.40% IS 21.60 Total s 27.00 7) Each Employee's Net (take-home) Pay Employee Dali Trey Kiesha Chee Total $ 2,000.00 $ 900.00 $ 450.00 $ 400,00 $ 3,750.00 Gross Pay Income tax withholding FICA - Social Security 284.00 145.00 39.00 30.00 498.00 68.20 55.80 27.90 24.80 176.70 FICA - Medicare 29.00 13.05 6.53 5.80 54.38 Health Insurance 20.00 20.00 20.00 20.00 80.00 Net Pay $ 1,598.80 666.15 $ 356.57 $ 319.40 $ 2,940.92 -8) Employer's total payroll-related expense for each employee. Employee Dali Trey Kiesha Chee Total $ 2,000.00 $ 900.00 $ 450.00 $ 400.00 $ 3,750.00 Gross Pay FICA - Social Security 68.20 55.80 27.90 24.80 176.70 FICA-Medicare 29.00 13.05 6.53 5.80 54.38 FUTA 0.00 0.00 0.60 2.40 3.00 SUTA 0.00 0.00 5.40 21.60 27.00 Health Insurance 40.00 40.00 40.00 40.00 160.00 160.00 Pension 72.00 36.00 300.00 32.00 Total Payroll Expense $ 2.297.20 $ 1,080.85 $ 566.43 526.60 $ 4,471.08

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

Fire Extinguisher Log Book

Authors: Arahan Khan

1st Edition

B09TZKR5Z4, 979-8428924282

More Books

Students also viewed these Accounting questions

Question

Describe the effect of automation on the process accounting system.

Answered: 1 week ago