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.
Name | Gross Pay thru Aug. 18 | Gross Pay | Income Tax Withholding |
Dali | $117,400 | $2,000 | $284 |
Trey | 117,600 | 900 | 145 |
Keisha | 6,900 | 450 | 39 |
Chee | 1,250 | 400 | 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 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 Security 5) Employer's FUTA Taxes Earnings Subject to Tax Earnings Subject to Tax Employee Tax Rate Tax Amount Employee Tax Rate Tax Amount Dali Trey Kiesha Chee re Kiesha Chee 60% 0 60% 0.60% 0-60% Total Total 2) Employees' FICA Withholdings for Medicare 6) Employer's SUTA Taxes Earnings Subject to Tax Earnings Subject to Tax Tax Rate Tax Amount Employee Tax Rate Tax Amount Employee Dali Trey Kiesha re Kiesha Chee 2.15% 2.15% 2.15% Total ) Employees' Net (take-home) Pay Employee Gross Pay Income tax withholding FICA Social Security FICA Medicare Health Insurance Net Pay 3) Employer's FICA Taxes for Social Security Dali Trey Kiesha Chee Total Earnings Subject to Tax Employee Tax Rate Tax Amount S 2.000.00 S 900.00 S 450.00 S 400.00 S 3,750.00 284.00 145.00 30.00 498.00 re Kiesha Chee Total 8) Employer's total payroll-related expense for each employee Employee Gross Pay FICA-Social Security FICA - Medicare FUTA SUTA Health Insurance Pension Total Payroll Expense 4) Employer's FICA Taxes for Medicare Dali Kiesha Chee Total Earnings Subject to Tax Tax Rate Tax Amount S 2.000.00 S 900.00 S 450.00 $ 400.00 3,750.00 Employee Dali Trey Kiesha Chee 1.45% 1.45% 1.45% 1.45% TotalStep by Step Solution
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