Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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

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

Franchising An Accounting Auditing And Income Tax Guide

Authors: Ross A. McCallum

2011edition

1460906179, 978-1460906170

More Books

Students also viewed these Accounting questions

Question

i. What was the outcome of the interaction?

Answered: 1 week ago

Question

c. What were you expected to do when you grew up?

Answered: 1 week ago

Question

d. How were you expected to contribute to family life?

Answered: 1 week ago

Question

e. What do you know about your ethnic background?

Answered: 1 week ago