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 $7000 paid to each employee, the company's FUTA taxes are 0.6% and SUTA taxes are 54%. 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. Current Week Nane Dali Trey Kiesha Chee Gross Pay through Aug. 18 $127,300 127.500 6.900 1.250 Gross Pay $2,000 900 450 400 Income Tax withholding 5284 145 39 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 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 6.20% Dali $ 1,100.00 68.20 55.80 900.00 6.20% 6.20% 6.20% Trey Kiesha 450.00 27.90 Chee 400.00 6.20% 24.80 Total $ 176.70 2) Employees' FICA Withholdings for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali 1.45% 1.45% $ $ 2,000.00 29.00 900.00 1.45% 13.05 Trey Kiesha 1.45% 6.53 450.00 400.00 Chee 1.45% 5.80 Total $ 54 38 3) Employer's FICA Taxes for Social Security Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate 6.20% Dali 1,100.00 6.20% $ 68.20 Trey 900.00 6.20% 55.80 Kiesha 450.00 6.20% 27.90 Chee 400.00 6.20% 24.80 Total $ 176.70 4) Employer's FICA Taxes for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount 1.45% Tax Rate Dali 1 45% $ 29.00 2,000.00 900.00 Trey 1.45% 13.05 Kiesha 450.00 1.45% 6.53 Chee 400.00 1.45% 5.80 Total $ 54 38 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate 0.60% Dali 1,100.00 Trey Kiesha 0.60% Chee 400.00 Total $ 0.00 6) Employer's SUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali 5.40% 5.40% Trey Kiesha 5.40% Chee 400.00 Total $ 0.00 7) Each Employee's Net (take-home) Pay Dali Kiesha Total Trey Chee $ 900.00 $ 450.00 $ 400.00 $ 2,000.00 $ 284.00 68.20 3,750.00 498,00 39.00 Employee Gross Pay Income tax withholding FICA - Social Security FICA - Medicare Health Insurance Net Pay 30.00 145.00 55.80 24.80 176.70 27.90 6.53 29.00 13.05 5.80 54.38 0.00 $ 0.00 $ 8) Employer's total payroll-related expense for each employee. Employee Dali Trey Kiesha Gross Pay $ 2,000.00 $ 900.00 $ 450.00 $ FICA - Social Security 68.20 55 80 27.90 FICA - Medicare 29.00 13.05 6.53 FUTA 0.00 0.00 0.00 SUTA 0.00 0.00 Chee 400.00 24.80 5.80 0.00 Total 3,750.00 176.70 54.38 0.00 0.00 0.00 Health Insurance Pension Total Payroll Expense 0.00 0.00 00 3,988 $ 2,097 20 $ 968,85 $ 484 43 $ 430.60 $
