Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $127,200 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 3.5% and SUTA taxes are 2.50%. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the companys four employees.
Problem 9-3A Payroll expenses, withholdings, and taxes LO P2, P3 Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $127,200 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 ta> are 3.5% and SUTA taxes are 2.50%. 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 Name Aug. 18 Dali $124,800 Trey 124,800 Kiesha 8,400 Chee 2,350 Gross Pay $5,000 2,400 2,000 1,400 Income Tax Withholding $ 469 354 50 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 employee's gross pay (atr 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 decimal places.): 1) Employee's FICA Withholdings for Social Security Earnings Tax Employee Subject to Tax Rate Amount Tax Dali $2,400.00 6.20% 148.80 2,400.00 6.20% 148.80 Kiesha Chee Total $ 297.60 Trey 2) Employee's FICA Withholdings for Medicare Earnings Tax Employee Subject to Tax Rate Tax Amount Dali Trey Kiesha Chee Total $ 0.00 3) Employer's FICA Taxes for Social Security Earnings Tax Employee Subject to Tax Rate Amount Tax Dali Trey Kiesha Chee Total $ 0.00 4) Employer's FICA Taxes for Medicare Earnings Tax Employee Subject to Tax Rate Tax Amount Dali Trey Kiesha T Chee Total $ 0.00 5) Employer's FUTA Taxes Earnings Employee Subject to Tax Tax Rate Tax Amount Dali Trey T Kiesha Chee Total $ 0.00 6) Employer's SUTA Taxes Earnings Employee Subject to Tax Dali Tax Rate Tax Amount Trey Kiesha Chee Total $ 0.00 7) Each Employee's Net (take-home) Pay Employee Dali Trey Kiesha Chee Total $5,000.00 $2,400.00 $2,000.00 $1,400.00 469.00 354.00 50.00 40.00 10,800.00 913.00 Gross Pay Income tax withholding FICA - Social Security FICA - Medicare Health Insurance Net Pay 148.80 148.80 297.60 0.00 0.00 0.00 $ Total 7) Each Employee's Net (take-home) Pay Employee Dali Trey Kiesha Chee Gross Pay $5,000.00 $2,400.00 $2,000.00 $1,400.00 Income tax 469.00 354.00 50.00 40.00 withholding FICA - Social 148.80 148.80 Security FICA - Medicare Health Insurance Net Pay 10,800.00 913.00 297.60 0.00 0.00 0.00 $ 8) Total Payroll Related Expense for Each Employee Employee Dali Trey Kiesha Chee Total Gross Pay $5,000.00 $2,400.00 $2,000.00 $1,400.00|| 10,800.00 FICA - Social 0.00 0.00 0.00 0.00 0.00 Security FICA - Medicare 0.001 0.00 0.00 0.00 0.00 FUTA 0.00 0.00 0.00 0.00 0.00 SUTA 0.00 0.001 0.00 0.00 0.00 Health Insurance 0.00 Pension 0.00 Total Payroll $5,000.00 $2,400.00 $2,000.00 $1,400.00 10.800.00 Expense
