Question
Paloma Co. Stars has four employees. FICA Social Security taxes are 6.2% of the first $110,100 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 $110,100 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, its FUTA taxes are 0.8% and SUTA taxes are 2.15% of the first $7,000 paid to each employee. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the companys four employees.
name | Gross Pay 8/18 | Gross Pay | Income Tax Withholding |
Dahlia | 107,200 | 3800 | 276 |
Trey | 36250 | 820 | 137 |
Kiesha | 8000 | 630 | 57 |
Chee | 1950 | 580 | 48 |
In addition to gross pay, the company must pay one-half of the $60 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 answers 2 decimal places)
Employee | Earnings subject to tax | Tax rate | Tax amount |
Dahlia | |||
Trey | |||
Kiesha | |||
Chee |
2)Emmployees' FICA withholding for Medicare
Employee | Earnings Subject to Tax | Tax Rate | Tax Amount |
Dahlia | |||
Trey | |||
Kiesha | |||
Chee |
3)Employer's FICA taxes for Social Security
Employee | Earnings subject to tax | tax rate | tax amount |
Dahlia | |||
Trey | |||
Kiesha | |||
Chee |
4) Employer's FICA taxes for Medicare
Employee | Earnings subject to Tax | Tax Rate | Tax Amount |
Dahlia | 1.45 | ||
Trey | 1.45 | ||
Kiesha | 1.45 | ||
Chee | 1.45 |
5)Employer's FUTA taxes
Employee | Earnings subject to tax | Tax Rate | Tax Amount |
Dahlia | .8 | ||
Trey | .8 | ||
Kiesha | .8 | ||
Chee | .8 |
6) Employer's SUTA taxes
Employee | Earnings subhect to tax | Tax Rate | Tax Amount |
Dahlia | 2.15 | ||
Trey | 2.15 | ||
Kiesha | 2.15 | ||
Chee | 2.15 |
7) Each employee's net (take-home) pay
Employee | Dahlia | Trey | Kiesha | Chee | Total |
Gross Pay | 3800 | 820 | 630 | 580 | 5830 |
Income Tax Withholding | 276 | 137 | 57 | 48 | 518 |
FICA -SS | |||||
FICA - Medicare | |||||
Health Insurance | |||||
Net Pay |
8) Total payroll related expense for each employee
Employee | Dahlia | Trey | Kiesha | Chee | Total |
Gross Pay | 3800 | 820 | 630 | 580 | 5830 |
FICA - SS | |||||
FICA -Medicare | |||||
FUTA | |||||
SUTA | |||||
Health Insurance | |||||
Pension | |||||
Total Payroll Expense |
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