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 transcribedimage text in transcribedimage text in transcribedimage 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. Current Week Gross Pay through Aug. 18 $125,400 126,000 7,800 1,750 Income Tax Gross Pay Withholding $5,600 2,400 1,600 2,000 Name Dali $ 383 403 45 Trey Kiesha 35 Chee In addition to gross pay, the company must pay one-half of the $74 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 Required Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal places.) 1) Employees' FICA Withholdings for Social Security Earnings Subject to Tax Tax RateTax Amount Employee Tax Rate Dali Trey Kiesha Chee Total S 0.00 2) Employees' FICA Withholdings for Medicare Earnings Subject to Tax Tax Rate Tax Amount Employee Tax Rate Dali Trey Kiesha Chee Total $ 0.00 3) Employer's FICA Taxes for Social Security Earnings Subject to Tax Tax Rate Employee Tax Amount Tax Rate Dali Trey Kiesha Chee Total S 0.00 4) Employer's FICA Taxes for Medicare Earnings Subject to Tax Tax Rate Employee Tax Amount Tax Rate Dali Trey Kiesha Chee Total S 0.00 5) Employer's FUTA Taxes Earnings Subject to Tax Tax Rate Employee Tax Amount Tax Rate Dali Trey Kiesha Chee Total S 0.00 6) Employer's SUTA Taxes Earnings Subject to Tax Tax Rate Employee Tax Amount Tax Rate Dali Trey Kiesha Chee Total $ 0.00 7) Each Employee's Net (take-home) Pay Dali Chee Total Employee Trey Kiesha S 5,600.00$2,400.00S 1,600.00S 2,000.00S 11,600.00 Gross Pay 403.00 45.00 866.00 Income tax withholding 383.00 35.00 FICA Social Security 0.00 FICA - Medicare 0.00 Health Insurance 0.00 Net Pay 0.00 8) Employer's total payroll-related expense for each employee Dali Chee Total Employee Trey Kiesha S 5,600.00$2,400.00S 1,600.00S 2,000.00S 11,600.00 Gross Pay FICA Social Security 0.00 0.00 0.00 0.00 0.00 FICA - Medicare 0.00 0.00 0.00 0.00 0.00 0.00 0.00 FUTA 0.00 0.00 0.00 0.00 0.00 SUTA 0.00 0.00 0.00 Health Insurance 0.00 Pension 0.00 S 5,600.00$2,400.00S 1,600.00S 2,000.00S 11,600.00 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

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions

Question

What is the relationship between humans and nature?

Answered: 1 week ago