Question
Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 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 $128,400 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 | $ | 124,400 | $ | 4,800 | $ | 525 | ||||||||
Trey | 126,000 | 2,400 | 322 | |||||||||||
Kiesha | 8,800 | 1,400 | 54 | |||||||||||
Chee | 2,750 | 1,800 | 43 | |||||||||||
In addition to gross pay, the company must pay one-half of the $94 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 Security Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate 6.20% Dali Trey Kiesha Chee Total $ 0.00 2) Employees' FICA Withholdings for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total $ 0.00 3) Employer's FICA Taxes for Social Security Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total $ 0.00 4) Employer's FICA Taxes for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total $ 0.00 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total $ 0.00 6) Employer's SUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total $ 0.00 Trey Kiesha Chee Total $ $ $ 1,800.00 $ 7) Each Employee's Net (take-home) Pay Employee Dali Gross Pay $ 4,800.00 Income tax withholding 525.00 FICA - Social Security FICA - Medicare Health Insurance 2,400.00 322.00 1,400.00 54.00 10,400.00 944.00 43.00 0.00 0.00 0.00 Net Pay $ 0.00 $ $ 8) Employer's total payroll-related expense for each employee. Employee Dali Trey Kiesha Gross Pay $ 4,800.00 $ 2,400.00 $ 1,400.00 FICA - Social Security 0.00 0.00 0.00 FICA - Medicare 0.00 0.00 0.00 FUTA 0.00 0.00 SUTA 0.00 0.00 0.00 Health Insurance | Chee 1,800.00 0.00 0.00 0.00 0.00 Total 10,400.00 0.00 0.00 0.00 0.00 0.00 0.00 10,400.00 0.00 Pension Total Payroll Expense $ 4,800.00 $ 2,400.00 $ 1,400.00 $ 1,800.00 $
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