Question
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 companys 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 companys four employees.
Current Week | ||||||||||||||
Name | Gross Pay through Aug. 18 | Gross Pay | Income Tax 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 employees gross pay (at no cost to employees) to a pension fund.
Just need help with #1 and #3 where the red Xs are
Answer is complete but not entirely correct. Tax Amount 1) Employees' FICA Withholdings for Social Security Earnings Employee Subject to Tax Rate Tax Tax Rate 6.20% Dali $ 8,900.00 6.20% Trey 2,800.00 6.20% Kiesha 1,800.00 6.20% Chee 1,600.00 6.20% Total 551.80 X 173.60 111.60 99.20 $ 936.20 Tax Amount 2) Employees' FICA Withholdings for Medicare Earnings Employee Subject to Tax Rate Tax Tax Rate 1.45% Dali $ 4,900.00 1.45% Trey 2,800.00 1.45% Kiesha 1,800.00 1.45% Chee 1,600.00 1.45% Total $ 71.05 40.60 26.10 23.20 $ 160.95 Tax Amount 3) Employer's FICA Taxes for Social Security Earnings Employee Subject to Tax Rate Tax Tax Rate 6.20% Dali $ 8,900.00 6.20% Trey 2,800.00 6.20% Kiesha 1,800.00 6.20% Chee 1,600.00 6.20% $ 551.80 X 173.60 111.60 99.20 Total $ 936.20Step by Step Solution
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