Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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%

image text in transcribed

image text in transcribed

image text in transcribed

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. Name Dali Trey Kiesha Chee Gross Pay through Aug. 18 $124,700 126,400 8,500 2,450 Current Week Income Tax Gross Pay Withholding $4,200 $ 483 2,000 346 1,400 51 1,800 41 In addition to gross pay, the company must pay one-half of the $88 per employee weekly health insurance; each employee pays the remaining one-half. 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 Earnings Subject to Tax Tax Rate Tax Amount Tax Rate 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 Kiesha Chee Total $ 1,800.00 $ 7) Each Employee's Net (take-home) Pay Employee Dali Trey Gross Pay 4,200.00 $ 2,000.00 Income tax withholding 483.00 346.00 FICA - Social Security FICA - Medicare 1,400.00 $ 51.00 9,400.00 921.00 41.00 0.00 0.00 0.00 Health Insurance Net Pay $ 0.00 8) Employer's total payroll-related expense for each employee. Employee Dali Trey Kiesha Gross Pay $ 4,200.00 $ 2,000.00 $ 1,400.00 $ FICA - Social Security 0.00 0.00 0.00 FICA - Medicare 0.00 0.00 0.00 Total 9,400.00 $ Chee 1,800.00 0.00 0.00 0.00 0.00 FUTA 0.00 0.00 0.00 0.00 0.00 SUTA 0.00 0.00 0.00 0.00 0.00 Health Insurance 0.00 Pension 0.00 Total Payroll Expense $ 4,200.00 $ 2,000.00 $ 1,400.00 $ 1,800.00 9,400.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bank Performance, Risk And Firm Financing

Authors: P. Molyneux

1st Edition

0230313353, 9780230313354

More Books

Students also viewed these Accounting questions

Question

How would you typify the trends of trade unionism internationally?

Answered: 1 week ago