Question
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%
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 companys 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 companys four employees.
Current Week | ||||||||||||||
Name | Gross Pay through Aug. 18 | Gross Pay | Income Tax Withholding | |||||||||||
Dali | $ | 115,600 | $ | 3,000 | $ | 426 | ||||||||
Trey | 116,150 | 2,350 | 379 | |||||||||||
Kiesha | 8,100 | 550 | 48 | |||||||||||
Chee | 2,050 | 500 | 38 | |||||||||||
In addition to gross pay, the company must pay one-half of the $80 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employees 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.):
1) Employees' FICA Withholdings for Social SecurityEmployeeEarnings Subject to TaxTax RateTax AmountDaliTreyKieshaCheeTotal$0.002) Employees' FICA Withholdings for MedicareEmployeeEarnings Subject to TaxTax RateTax AmountDaliTreyKieshaCheeTotal$0.003) Employer's FICA Taxes for Social SecurityEmployeeEarnings Subject to TaxTax RateTax AmountDaliTreyKieshaCheeTotal$0.004) Employer's FICA Taxes for MedicareEmployeeEarnings Subject to TaxTax RateTax AmountDaliTreyKieshaCheeTotal$0.005) Employer's FUTA TaxesEmployeeEarnings Subject to TaxTax RateTax AmountDaliTreyKieshaCheeTotal$0.006) Employer's SUTA TaxesEmployeeEarnings Subject to TaxTax RateTax AmountDaliTreyKieshaCheeTotal$0.007) Each Employee's Net (take-home) PayEmployeeDaliTreyKieshaCheeTotalGross Pay$3,000.00$2,350.00$550.00$500.00$6,400.00Income tax withholding426.00379.0048.0038.00891.00FICA - Social Security0.00FICA - Medicare0.00Health Insurance0.00Net Pay$0.008) Total Payroll Related Expense for Each EmployeeEmployeeDaliTreyKieshaCheeTotalGross Pay$3,000.00$2,350.00$550.00$500.00$6,400.00FICA - Social Security0.000.000.000.000.00FICA - Medicare0.000.000.000.000.00FUTA0.000.000.000.000.00SUTA0.000.000.000.000.00Health Insurance0.00Pension0.00Total Payroll Expense$3,000.00$2,350.00$550.00$500.00$6,400.00
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