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 $125,000 126,200 8,200 2,150 Current Week Income Tax Gross Pay Withholding $5,800 $ 440 2,200 371 1,400 49 1,600 38 In addition to gross pay, the company must pay one-half of the $82 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. 1) Employees' FICA Withholdings for Social Security Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali $ 6.20% 6.20% 6.20% Trey Kiesha Chee 3,400.00 2,200.00 1,400.00 1,600.00 6.20% 6.20% Total 210.80 136.40 86.80 99.20 533.20 $ 2) Employees' FICA Withholdings for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali $ $ Trey 5,800.00 2,200.00 1,400.00 1,600.00 1.45% 1.45% 1.45% 1.45% 1.45% Total Kiesha 84.10 31.90 20.30 23.20 159.50 Chee $ 3) Employer's FICA Taxes for Social Security Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali $ $ Trey 3,400.00 2,200.00 1,400.00 1,600.00 6.20% 6.20% 6.20% 6.20% 6.20% Total Kiesha 210.80 136.40 86.80 99.20 533.20 Chee $ 4) Employer's FICA Taxes for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali $ $ Trey 5,800.00 2,200.00 1,400.00 1,600.00 1.45% 1.45% 1.45% 1.45% 1.45% Total Kiesha Chee 84.10 31.90 20.30 23.20 159.50 $ 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey 0.60% 0.60% Kiesha 0.60% 0.60% 0.60% Total Chee 1,600.00 $ $ 9.60 9.60 6) Employer's SUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey 5.40% 5.40% 5.40% 5.40% 5.40% Total Kiesha Chee 1,600.00 $ $ 86.40 86.40 $ $ $ $ 7) Each Employee's Net (take-home) Pay Employee Dali Gross Pay $ 5,800.00 Income tax withholding 440.00 FICA - Social Security 210.80 FICA - Medicare 84.10 Health Insurance Net Pay Trey 2,200.00 371.00 136.40 31.90 Kiesha 1,400.00 49.00 86.80 20.30 Chee 1,600.00 38.00 99.20 23.20 Total 11,000.00 898.00 533.201 159.50 0.00 0.00 | $ $ $ 8) Employer's total payroll-related expense for each employee. Employee Dali Trey Kiesha Gross Pay $ 5,800.00 $ 2,200.00 $ 1,400.00 FICA - Social Security 210.80 136.40 86.80 FICA - Medicare 84.10 31.90 20.30 FUTA 0.00 0.00 0.00 0.00 0.00 0.00 Health Insurance Pension Total Payroll Expense $ 6,094.90 $ 2,368.30 $ 1,507.10 Chee 1,600.00 99.20 23.20 9.60 86.40 Total 11,000.00 533.20 159.50 9.60 86.40 0.00 0.00 11,788.70 SUTA $ 1,818.40 $
