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Paloma Co. has four employees. Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $132,900 paid to each employee, and
Paloma Co. has four employees.
Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $132,900 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. Name Dali Trey Kiesha Chee Gross Pay through Aug. 18 $124,000 130, 100 9,200 3,150 Current Week Income Tax Gross Pay withholding $4,900 $ 582 2,800 290 1,800 57 1,600 46 In addition to gross pay, the company must pay one-half of the $102 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.): Tax Amount 1) Employees' FICA Withholdings for Social Security Employee Earnings Tax Rate Subject to Tax Tax Rate 6.20% Dali Trey 2,800.00 Kiesha 1.800.00 0.00 1) Employees' FICA Withholdings for Social Security Employee Earnings Subject to Tax Tax Rate Tax Amount 6.20% Tax Rate Dali 2,800.00 Trey Kiesha 0.00 1,800.00 1,600.00 Chee 0.00 Total $ 0.00 2) Employees' FICA Withholdings for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali $ 4,900.00 2,800.00 Trey 0.00 Kiesha 0.00 1,800.00 1,600.00 Chee 0.00 Total $ $ 0.00 3) Employer's FICA Taxes for Social Security Employee Earnings Subject to Tax Tax Rate Tax Amount 3) Employer's FICA Taxes for Social Security Earnings Employee Tax Rate Subject to Tax Tax Amount Tax Rate Dali Trey 0.00 2,800.00 1,800.00 Kiesha 0.00 Chee 1,600.00 0.00 Total $ 0.00 4) Employer's FICA Taxes for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali $ 4,900.00 0.00 Trey Kiesha 2,800.00 1,800.00 1,600.00 0.00 Chee 0.00 Total $ 0.00 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Saved 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha 1,800.00 Chee 1,600.00 Total $ 0.00 6) Employer's SUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Rate Tax Amount Dali Trey Kiesha 2,800.00 1,800.00 1.600.00 Chee Total $ 0.00 7) Each Employee's Net (tako-home) Pay Employee Dali Trey Kiesha Chee Total Gross Pay $ 4,900.00 $ 2,800.00 $ 1,800.00 $ 1,600.00 $ 11,100.00 Chee Total $ 1,600.00 0.00 11,100.00 0.00 8) Employer's total payroll-related expense for each employee. Employee Dali Trey Kiesha Gross Pay $ 4,900.00 $ 2,800.00 $ 1,800.00 $ FICA - Social Security 0.00 0.00 0.00 FICA - Medicare 0.00 0.00 0.00 FUTA 0.00 0.00 0.00 SUTA 0.00 0.00 0.00 Health Insurance 51.00 51.00 51.00 Pension 0.00 0.00 0.00 0.00 0.00 0.00 51.00 204.00 0.00 Total Payroll Expense $ 4,951.00 $ 2,851.00 $ 1,851.00 $ 1,651.00 $ 11,304.00 Step by Step Solution
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