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 145%

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 145% of gross pay. Also, for the first $7,000 paid to each employee, the company's FUTA taxes are 06% 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 Current Week Gross Pay through Gross Income Tax Ne Aug. 18 Pay Withholding Dali $125,600 $5,000 $ 355 Trey 125,000 3,400 64 Kiesha 7,600 1,600 43 Chee 1.550 2,000 34 In addition to gross pay, the company must pay one half of the 570 per employee weekay health insurance cach employee pays the remaining one-hal The company also contributes an extra 8% of each employee's gross payat 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 Earnings Employee Subject to Tax Rate Tax Tax Amount Tax Rate Dall Trey Kiesha Chee Total Tax 2) Employees' FICA Withholdings for Medicare Earnings Employee Subject to Tax Rate Amount Tax Tax Rate Dali Trey Kisha Chee Total 3) Employer's FICA Taxes for Social Security Earnings Employee Subject to Tax Rate Tax Amount Tax Rate Dali Trey Kesha Cheo Total Tax Amount 4) Employers FICA Taxes for Medicare Earnings Employee subject to Tax Rate Ta Tax Rate Dar Trey Kesha Chee ework Employee eaming Subject to Tax Rate Tax Tax Amount Tax Rate Dali Trey Kesha Chee Total Tax Amount 4) Employers FICA Taxes for Medicare Earnings Employee Subject to Tax Rate Tax Tax Rate Dall Trey Kesha Chee Total 5) Employer's FUTA Taxes Earnings Employee Subject to Tax Rate Tax Tax Rate Tax Amount ball Trey Kiosha Chee Total Tax Amount 6) Employer's SUTA Taxes Earnings Employee Subject to Tax Rate Tax Tax Rate Dal Trey Kesho Chee Total Chee Total $ 2,000.00 12.000.00 34,00 490.00 7) Each Employee's Net (take-home) Pay Employee Dati Trey Kesha $ $ $ Gross Pay 5.000.00 3.400.00 1.600.00 Income tax 355.00 64.00 43.00 withholding FICA - Social Security FICA - Medicare Health Insurance Not Pay They 3) Employer's total payroll related expense for each employee Employee Da Kisha Ghee To $ s $ $ Gross Pay 5.000.00 3,400.00 1,600.00 2,000.00 12.000.00 FICA-SOGIN Security FICA-Medicare

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

Corporate Environmental Responsibility Accounting And Corporate Finance In The EU

Authors: Panagiotis Dimitropoulos, Konstantinos Koronios

1st Edition

3030727726, 9783030727727

More Books

Students also viewed these Accounting questions