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.
Name | Gross Pay Through August 18th | Gross Pay | Income tax withholding |
Dali | 125,300 | 5,800 | 398 |
Trey | 134,700 | 3,000 | 395 |
kiesha | 7,900 | 2,000 | 46 |
Chee | 1,850 | 1,600 | 36 |
In addition to gross pay, the company must pay one-half of the $76 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.
Note: Round your intermediate calculations and final answers to 2 decimal place
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