Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 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. Current Week Name Dali Trey Kiesha Chee Gross Pay through August 18 $ 125,000 135,500 8,200 2,150 Gross Pay Income Tax Withholding $ 5,800 2,200 $ 440 371 49 38 1,400 1,600 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 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.): 1) Employees' FICA Withholdings for Social Security Employee Tax Rate Dali Trey Kiesha Chee Earnings Subject to Tax Tax Rate Tax Amount Total $ 0.00 2) Employees' FICA Withholdings for Medicare Employee Tax Rate Dali Trey Kiesha Chee Earnings Subject to Tax Tax Rate Tax Amount Total $ 0.00 3) Employer's FICA Taxes for Social Security Employee Tax Rate Dali Trey Kiesha Chee Earnings Subject to Tax Tax Rate Tax Amount Total 69 0.00 4) Employer's FICA Taxes for Medicare Employee Tax Rate Dali Trey Kiesha Chee Earnings Subject to Tax Tax Rate Tax Amount Total EA 0.00 5) Employer's FUTA Taxes Employee Tax Rate Dali Trey Kiesha Chee Earnings Subject to Tax Tax Rate Tax Amount Total $ EA 0.00 6) Employer's SUTA Taxes Employee Tax Rate Dali Trey Kiesha Chee Earnings Subject to Tax Tax Rate Tax Amount Total $ 0.00 7) Each Employee's Net (take-home) Pay Trey Kiesha Chee Total 5,800.00 $ 2,200.00 $ 1,400.00 $ 1,600.00 $ 11,000.00 Employee Dali Gross Pay Income tax withholding 440.00 FICA Social Security FICA - Medicare Health Insurance Net Pay 371.00 49.00 38.00 898.00 0.00 0.00 0.00 EA $ 0.00 8) Employer's Total Payroll-Related Expense for Each Employee. Employee Dali Trey Kiesha Chee Total Gross Pay $ 5,800.00 $ 2,200.00 $ 1,400.00 $ 1,600.00 $ 11,000.00 FICA-Social Security 0.00 0.00 0.00 0.00 0.00 FICA - Medicare 0.00 0.00 0.00 0.00 0.00 FUTA 0.00 0.00 0.00 0.00 0.00 SUTA 0.00 0.00 0.00 0.00 0.00 Health Insurance 0.00 Pension 0.00 Total Payroll Expense $ 5,800.00 $ 2,200.00 $ 1,400.00 $ 1,600.00 $ 11,000.00

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

More Books

Students also viewed these Accounting questions

Question

B. Did you agree or disagree with anything you read? Explain.

Answered: 1 week ago

Question

Tell the merits and demerits of Mendeleev's periodic table.

Answered: 1 week ago