Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Paloma Co. has four employees. FlICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45%

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Paloma Co. has four employees. FlICA 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 company's 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 company's four employees. Current Week Gross Pay through Aug. 18 $125,800 Income Tax Gross Pay $3,400 withholding 327 Name Dali Trey Kiesha 125,600 7,400 1,350 2,800 1,600 1,000 97 42 Chee 32 In addition to gross pay, the company must pay one-half of the $66 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.) 1) Employees' FICA With holdings for Social Security Earnings Subject to Tax Employee Tax Rate Tax Amount 1) Employees' FICA With holdings for Social Security Earnings Subject to Tax Employee Tax Amount Tax Rate Tax Rate Dali Trey Kiesha Chee Total 2) Employees' FICA With holdings for Medicare Earnings Subject to Tax Employee Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total 3) Employer's FICA Taxes for Social Security Earnings Subject to Tax Employee Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total 4) Employer's FICA Taxes for Medicare Earnings Subject to Tax Employee Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total 5) Employer's FUTA Taxes Earnings Subject to Tax Employee Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total 6) Employer's SUTA Taxes Earnings Subject to Tax Employee Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total 7) Each Employee's Net (take-home) Pay Employee Dali Trey Kiesha Chee Total 1,000.00 $ 3,400.00 $ 1,600.00 $ Gross Pay 2,800.00 8,800.00 Income tax withholding FICA-Social Security FICA - Medicare Health Insurance Net Pay 327.00 97.00 42.00 32.00 498.00 8) Employer's total payroll-related expense for each employee. Employee Dali Trey Kiesha Chee Total Gross Pay FICA-Social Security 3,400.00 2,800.00 1,600.00 1,000.00 8,800.00 FICA- Medicare FUTA SUTA Health Insurance Pension Total Payroll Expense

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

Financial Accounting Theory And Analysis Text And Cases

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey

9th Edition

9780470128817

More Books

Students also viewed these Accounting questions