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 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 company's four employees. Current Week Gross Pay through Name Aug. 18 Dali $123,900 Trey 124,400 Kiesha 9,300 Chee 3,250 Gross Pay $4,400 2,800 2,000 2,000 Income Tax Withholding $ 596 282 58 47 In addition to gross pay, the company must pay one-half of the $104 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.): Trey Kiesha Chee 2,800.00 2,000.00 2,000.00 6.20% 173.60|| 6.20% 124.00 6.20% 124.00 Total $ 626.20 2) Employee's FICA Withholdings for Medicare Earnings Tax Employee Subject to Tax Rate Amount Tax Dali $4,400.00 1.45% $ 63.80 2,800.00 1.45% 40.60 Kiesha 2,000.00 1.45% 29.00 Chee 2,000.00 1.45% 29.00 Total $ 162.40 Trey 3) Employer's FICA Taxes for Social Security Earnings Employee Subject to Tax Rate Amount Tax Dali $3,300.00 6.20% $ 204.60 2,800.00 6.20% 173.60 Kiesha 2,000.00 6.20% 124.00 Chee 2,000.00 6.20% 124.00 Total $ 626.20 Trey 4) Employer's FICA Taxes for Medicare Earnings Tax Employee Subject to Tax Rate Amount Tax Dali $4,400.00 1.45% $ 63.80 Trey 2,800.00 1.45% 40.60 Kiesha 2,000.00 1.45% 29.00 Chee 2.000.000 1.45% 29.00 Total $ 162.40 Tax Tax Rate Amount 5) Employer's FUTA Taxes Earnings Employee Subject to Tax Dali Trey Kiesha Chee 3.50% 3.50% Total $ 0.00 Tax Rate Tax Amount 6) Employer's SUTA Taxes Earnings Employee Subject to Dali Trey Kiesha Chee Total $ 0.00 Total 7) Each Employee's Net (take-home) Pay Employee Dali Trey Kiesha Chee Gross Pay $4,400.00 $2,800.00 $2,000.00 $2,000.00 Income tax 596.000 282.00 58.00 47.000 withholding FICA - Social 204.60 173.60 124.00 124.00 Security FICA - Medicare 63.80 40.60 29.00 29.00 Health Insurance i Net Pay 1 200 000 983.00 626.20 162.40 0.00 0.00 $ 8) Total Payroll Related Expense for Each Employee Employee Dali Trey Kiesha Chee Total Gross Pay $4,400.00 $2,800.00 $2,000.00 $2,000.00 1120000 FICA - Social 204.60 173.60 124.00 124.00 626.20 Security FICA - Medicare 63.80 40.60 29.00 29.00 162.40 FUTA 0.00 0.00 0.00 0.00 0.00 SUTA 0.00 0.00 0.00 0.00 0.00 Health Insurance 0.00 Pension 0.00 Total Payroll $4,668.40 $3,014.20 $2,153.00 $2,153.00 11,988.60 Expense 0.00 0
