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 1.45%

image text in transcribedimage text in transcribed

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 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 $123,800 125,609 9.488 3,350 Current Week Income Tax Gross Pay Withholding $5,109 $ 611 2,800 274 1, eee 1,200 42 In addition to gross pay, the company must pay one-half of the $106 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 Trey Kesha Chee Total 2) Employees' FICA Withholdings for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Total 3) Employer's FICA Taxes for Social Security Employee Earnings Subject to Tax Tax Rate Tax Amount Tac Rate Dali Trey Kesha Chee 4) Employer's FICA Taxes for Medicare Earnings Employee Tax Amount Subject to Tax Tax Rate Tax Rate Dali Kesha Chee 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Tota 6) Employer's SUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tac Rate Dali Trey Kesha 6) Employer's SUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kesha Chee Total $ Trey 2.800.00 274.00 7) Each Employee's Net (take-home) Pay Employee Dali Gross Pay $ 5,100.00 Income tax withholding 611.00 FICA - Social Security FICA - Medicare Kiesha $ 1,000.00 50.00 $ Chee 1,200.00 47.00 $ Total 10,100.00 991.00 Health Insurance Net Pay Chee 1.200.00 Total 10,100.00 $ $ 8) Employer's total payroll-related expense for each employee. Employee Dali Trey Kiesha Gross Pay $ 5,100.00 $ 2.800.00 $ 1.000.00 FICA - Social Security FICA - Medicare FUTA SUTA Health Insurance Pension Total Payroll Expense

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_2

Step: 3

blur-text-image_3

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

Modern Auditing And Assurance Services

Authors: Philomena Leung, Paul Coram, Barry J. Cooper, Peter Richardson

6th Edition

1118615247, 9781118615249

More Books

Students also viewed these Accounting questions

Question

Explain the place of planning in human resource management

Answered: 1 week ago