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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 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. $127,300 Current Week Name Dali Trey Kiesha Chee Gross Pay through Aug. 18 Gross Pay Income Tax Withholding $2,000 900 450 400 $284 145 39 30 127,500 6,900 1,250 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 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 Employee Tax Rate Dali Trey Kiesha Chee Earnings Subject to Tax Tax Rate Tax Amount Total 2) Employees' FICA Withholdings for Medicare Employee Tax Rate Dali Trey Kiesha Chee Earnings Subject to Tax Tax Rate Tax Amount 3) Employer's FICA Taxes for Social Security Employee Tax Rate Dali Trey Kiesha Chee Total Earnings Subject to Tax Tax Rate Tax Amount 4) Employer's FICA Taxes for Medicare Employee Tax Rate Dali Trey Total Earnings Subject to Tax Tax Rate Tax Amount Kiesha Chee 5) Employer's FUTA Taxes Employee Tax Rate Dali Trey Kiesha Chee Total Earnings Subject to Tax Tax Rate Tax Amount 6) Employer's SUTA Taxes Employee Tax Rate Dali Trey Kiesha Chee Total Earnings Subject to Tax Tax Rate Tax Amount 7) Each Employee's Net (take-home) Pay Total Chee 7) Each Employee's Net (take-home) Pay Total Chee Total 450.00 $ 400.00 $3,750.00 39.00 30.00 498.00 Employee Dali Trey Kiesha Gross Pay Income tax withholding $ 2,000.00 $ 284.00 900.00 $ 145.00 FICA - Social Security FICA - Medicare Health Insurance Net Pay 8) Employer's total payroll-related expense for each employee. Employee Gross Pay FICA-Social Security FICA-Medicare FUTA Dali Trey Kiesha $ 2,000.00 $ 900.00 $ 450.00 $ SUTA Health Insurance Pension Total Payroll Expense Chee Total 400.00 $3,750.00
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