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.
Current Week | ||||||||||||||
Name | Gross Pay through Aug. 18 | Gross Pay | Income Tax Withholding | |||||||||||
Dali | $ | 124,500 | $ | 4,300 | $ | 511 | ||||||||
Trey | 125,600 | 2,800 | 330 | |||||||||||
Kiesha | 8,700 | 1,600 | 53 | |||||||||||
Chee | 2,650 | 1,600 | 42 | |||||||||||
In addition to gross pay, the company must pay one-half of the $92 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.):
1) Employees' FICA Withholdings for Social Security Employee Earnings Subject to Tax Tax Rate Tax Amount 6.20% Tax Rate Dali 241.80 Trey Kiesha Chee Total $ 241.80 2) Employees' FICA Withholdings for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount 1.45% Tax Rate Dali $ 62.35 Trey Kiesha Chee Total $ 62.35 3) Employer's FICA Taxes for Social Security Employee Earnings Subject to Tax Tax Amount Tax Rate 6.20% Dali $ 241.80 Trey Kiesha Chee Total $ 241.80 4) Employer's FICA Taxes for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount 1.45% Tax Rate Dali $ 62.35 Trey Kiesha Chee Total $ 62.35 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount 0.60% Tax Rate Dali Trey 0.60% 0.60% 0.60% Kiesha Chee Total $ 0.00 6) Employer's SUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount 5.40% 5.40% Tax Rate Dali Trey Kiesha Chee 5.40% 5.40% Total $ 0.00 Total $ Trey 2,800.00 330.00 Kiesha $ 1,600.00 53.00 $ Chee 1,600.00 42.00 $ 7) Each Employee's Net (take-home) Pay Employee Dali Gross Pay $ 4,300.00 Income tax withholding 511.00 FICA - Social Security 241.80 FICA - Medicare 62.35 Health Insurance 46.00 Net Pay $ 3,438.85 10,300.00 936.00 241.80 62.35 184.00 8,416.85 46.00 2,209.80 46.00 1,378.60 46.00 1,389.60 $ $ $ $ Chee 1,600.00 $ $ Total 10,300.00 241.80 0.00 62.35 8) Employer's total payroll-related expense for each employee. Employee Dali Trey Kiesha Gross Pay $ 4,300.00 $ 2,800.00 $ 1,600.00 FICA - Social Security 241.80 0.00 0.00 FICA - Medicare 62.35 0.00 0.00 FUTA 0.00 0.00 0.00 SUTA 0.00 0.00 0.00 Health Insurance 46.00 46.00 46.00 Pension 344.00 224.00 128.00 Total Payroll Expense $ 4,994.15 $ 3,070.00 $ 1,774.00 0.00 0.00 0.00 0.00 0.00 46.00 128.00 184.00 824.00 11,612.15 $ 1,774.00 $Step by Step Solution
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