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Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $132,900 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 $132,900 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 Gross Pay Income Tax Name through Aug. 18 Gross Pay Withholding Dali $124,000 $4,900 $ 582 Trey 130, 100 2,800 290 Kiesha 9,200 1,800 57 Chee 3,150 1,600 46 In addition to gross pay, the company must pay one-half of the $102 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.): 1) Employees' FICA Withholdings for Social Security Earnings Employee Tax Rate Subject to Tax Tax Amount Tax Rate Dali Trey Kiesha Chee Total 2) Employees' FICA Withholdings for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total 3) Employer's FICA Taxes for Social Security Employee Earnings Tax Rate Subject to Tax Tax Amount Tax Rate Dali Trey Kiesha Chee Total 4) Employer's FICA Taxes for Medicare Earnings Employee Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total 6) Employer's SUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total Trey Kiesha Chee Total 2,800.00 $ 7) Each Employee's Net (take-home) Pay Employee Dali Gross Pay $ 4,900.00 $ Income tax withholding 582.00 FICA - Social Security FICA - Medicare $ 1,800.00 57.00 1,600.00 $ 11,100.00 46.00 975.00 290.00 Health Insurance Net Pay Total 8) Employer's total payroll-related expense for each employee. Employee Dali Trey Kiesha Gross Pay $ 4,900.00 $ 2,800.00 $ 1,800.00 FICA - Social Security FICA - Medicare Chee 1,600.00 $ $ 11,100.00 FUTA SUTA Health Insurance Chee Total $ 11,100.00 1,600.00 8) Employer's total payroll-related expense for each employee. Employee Dali Trey Kiesha Gross Pay $ 4,900.00 $ 2,800.00 $ 1,800.00 $ FICA - Social Security FICA - Medicare FUTA SUTA Health Insurance Pension Total Payroll Expense
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