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 $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.

Current Week
Name Gross Pay through Aug. 18 Gross Pay Income Tax Withholding
Dali $ 116,000 $ 4,000 $ 568
Trey 116,650 1,850 298
Kiesha 9,100 650 56
Chee 3,050 600 45

In addition to gross pay, the company must pay one-half of the $100 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
Dali 6.20%
Trey 1,850.00 6.20% 114.70
Kiesha 650.00 6.20% 40.30
Chee 600.00 6.20% 37.20
Total $192.20
2) Employees' FICA Withholdings for Medicare
Employee Earnings Subject to Tax Tax Rate Tax Amount
Dali
Trey
Kiesha
Chee
Total $0.00
3) Employer's FICA Taxes for Social Security
Employee Earnings Subject to Tax Tax Rate Tax Amount
Dali
Trey
Kiesha
Chee
Total $0.00
4) Employer's FICA Taxes for Medicare
Employee Earnings Subject to Tax Tax Rate Tax Amount
Dali
Trey
Kiesha
Chee
Total $0.00
5) Employer's FUTA Taxes
Employee Earnings Subject to Tax Tax Rate Tax Amount
Dali
Trey
Kiesha
Chee
Total $0.00

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

Step: 3

blur-text-image

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

Changing Academics Quality Audit And Its Perceived Impact

Authors: Ming Cheng

1st Edition

3639134273, 978-3639134278

More Books

Students also viewed these Accounting questions

Question

P(-1.03 z Answered: 1 week ago

Answered: 1 week ago

Question

What are the different techniques used in decision making?

Answered: 1 week ago