Question
Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $118,500 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 $118,500 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 0.6% and SUTA taxes are 2.15%. 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 $ 115,600 $ 3,000 $ 426 Trey 116,150 2,350 379 Kiesha 8,100 550 48 Chee 2,050 500 38 In addition to gross pay, the company must pay one-half of the $80 per employee weekly health insurance; each employee pays the remaining one-half. 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.): a) employees FICA withholdings for social security B) Employees' FICA withholdings for medicare C) Employers FICA taxes for social security D) Employees FICA taxes for medicare E) Emplyers FUTA Taxes F) Employers SUTA taxes G) Each employers net pay H) Totyal payroll related expense for each employee
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