Question
Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $127,200 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 $127,200 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 companys FUTA taxes are 3.5% and SUTA taxes are 2.5%. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the companys four employees.
Current Week | ||||||||||||||
Name | Gross Pay through Aug. 18 | Gross Pay | Income Tax Withholding | |||||||||||
Dali | $ | 126,100 | $ | 2,000 | $ | 284 | ||||||||
Trey | 126,300 | 900 | 145 | |||||||||||
Kiesha | 6,900 | 450 | 39 | |||||||||||
Chee | 1,250 | 400 | 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 employees 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) Employee's FICA Withholdings for Social Security Earnings Employee Subject to Tax Tax Rate Dali Trey Kiesha Chee Tota S 0.00
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