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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. Name Dali Gross Pay through Aug. 18 $127,300 127,500 6,900 1,250 Current Week Income Tax Withholding $284 145 39 Gross Pay $2,000 900 450 400 Trey Kiesha Chee 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. Page 371 Page 37 Required Compute the following for the week ended August 25 (round amounts to the nearest cent): 1. Each employee's FICA withholdings for Social Security. 2. Each employee's FICA withholdings for Medicare. 3. Employer's FICA taxes for Social Security. Check (3) $176.70 4. Employer's FICA taxes for Medicare. (4) $54.38 5. Employer's FUTA taxes. (5) $3.00 6. Employer's SUTA taxes. 7. Each employee's net (take-home) pay. (7) Total net pay, $2,940.92 8. Employer's total payroll-related expense for each employee
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