Question
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 companys 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 companys four employees.
Name | Gross Pay Through August 18 | Gross Pay for Current Week | Income Tax Withholding |
Dali | 124,800 | 5,000 | 469 |
Trey | 126,000 | 2,400 | 354 |
Kiesha | 8,400 | 2,000 | 50 |
Chee | 2,350 | 1,400 | 40 |
In addition to gross pay, the company must pay one-half of the $86 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.):
Find...
1. Employee's FICA withholdings for social security
2. employee's FICA withholdings for Medicare
3. employer's FICA taxes for social security
4. employer's FICA taxes for medicare
5. employer's FUTA Taxes
6. employer's SUTA taxes
7. each employee's net (take home) pay
8. employers total payroll related expense for each employee
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