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.
Name | Gross Pay thru Aug. 18 | Gross Pay | Income Tax Withholding |
Dali | $115,700 | $2,000 | $483 |
Trey | 116,350 | 900 | 346 |
Keisha | 8,500 | 450 | 51 |
Chee | 2,450 | 400 | 41 |
In addition to gross pay, the company must pay two-thirds of the $88 per employee weekly health insurance; each employee pays the remaining one-third. 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.):
1) Employees' FICA Withholdings for Social Security Earnings Subject to Tax mployee Tax Rate Tax Amount Dali Trey Kiesha Chee 6.20% 210.80 Total 210.80 2) Employees' FICA Withholdings for Medicare Earnings Subject to Tax oyee Tax Rate Tax Amount 1.45% Dali Trey Kieshs Chee 49.30 TotalS 49.30 3) Employer's FICA Taxes for Social Security Earnings Subject to Tax oyee Tax Rate Tax Amount Dali Trey Kieshs Chee 6.20961 s 210.80 TotalS 210.80 4) Employer's FICA Taxes for Medicare Earnings Subject to Tax mployee Tax Rate Tax Amount 1.45%r Dali Trey Kieshs Chee s 49.30 TotalS 49.30
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