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Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $137,700 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 $137,700 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 preparine its payroll calculations for the week ended Aueust 25 . Payroll records show the following information for the company's four employes. 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 compary 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 amounts to the nearest cent): 1. Each employee's FICA witholdings for Social Security. 2. Each employee's FICA withholdines for Medicare. 3. Employer's FICA taxes for Social Security. 4. Employer's FICA taxes for Medicare. Prge 377 (4) $54.38 5. Employer's FUTA taxes. (5) 43.00 6. Employer's SUTA taxes. 7. Each employee's net (take-home) pay. 8. Employer's total payroll-related expense for each employee
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