Question
Paloma Co. Stars has four employees. FICA Social Security taxes are 6.2% of the first $117,000 paid to each employee, and FICA Medicare taxes are
Paloma Co. Stars has four employees. FICA Social Security taxes are 6.2% of the first $117,000 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 .6% and SUTA taxes are 6.20%. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the companys four employees.
employee gross pay until aug 18 gross pay income tax withheld
current week current week
Dahlia | $ | 115,550 | $ | 2,550 | $ | 362 | ||||||
Trey | 116,200 | 800 | 129 | |||||||||
Kiesha | 8,200 | 560 | 49 | |||||||||
Chee | 2,150 | 510 | 38 |
In addition to gross pay, the company must pay one-half of the $82 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. a) Employees' FICA withholding for social security b) Employees' FICA withholding for medicare c) Employer FICA taxes for Social Security d)Employer FICA taxes for medicare e)Employe's FUTA and SUTA Taxes f) each employees' Net (take home) Pay |
g) Total Payroll expense for each employee
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