Question
Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45%
Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 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 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 companys four employees.
Current Week | |||
---|---|---|---|
Name | Gross Pay through August 18 | Gross Pay | Income Tax Withholding |
Dali | $ 136,600 | $ 2,000 | $ 284 |
Trey | 136,800 | 900 | 145 |
Kiesha | 6,900 | 450 | 39 |
Chee | 1,250 | 400 | 30 |
In addition to gross pay, the company must pay two-thirds of the $60 per employee weekly health insurance; each employee pays the remaining one-third. 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 intermediate calculations and final answers to 2 decimal places.)
1) Employees' FICA Withholdings for Social Security 2) Employees' FICA Withholdings for Medicare 3) Employer's FICA Taxes for Social Security \begin{tabular}{l|l|l|l|l|l|l} \hline Employee & EarningsSubjecttoTax & Tax Rate & Tax Amount & \\ \hline Tax Rate & & \multicolumn{2}{|c|}{0.60%} & & & \\ \hline Dali & & & & & & \\ \hline Trey & & & & & & \\ \hline Kiesha & & & & & & \\ \hline Chee & & & & & & \\ \hline \end{tabular} 4) Employer's FICA Taxes for Medicare \begin{tabular}{l|l|l|l|l|l|l} Employee & EarningsSubjecttoTax & Tax Rate & Tax Amount & \\ \hline Tax Rate & & \multicolumn{2}{|c|}{5.40%} & & & \\ \hline Dali & & & & & & \\ \hline Trey & & & & & & \\ \hline Kiesha & & & & & & \\ \hline Chee & & & & & \\ \hline & & & & & \\ \hline \end{tabular} 5) Employer's FUTA Taxes \begin{tabular}{|l|l|l|l|} \hline Employee & EarningsSubjecttoTax & Tax Rate & Tax Amount \\ \hline Tax Rate & & & \\ \hline Dali & & & \\ \hline Trey & & & \\ \hline Kiesha & & & \\ \hline Chee & & & \\ \hline & & Total & $1 \\ \hline \end{tabular} 6) Employer's SUTA Taxes Employee Tax Rate Dali Trey Kiesha Chee Earnings Subject to Tax Tax Rate \begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline & & \\ \hline & Total & $0.00 \\ \hline \end{tabular} 71 Eanh Emnlavoo'e Mat Itako_hamol DoulStep by Step Solution
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