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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. Name Dali Trey Kiesha Chee Current Week Gross Pay $ 2,000 900 450 400 Income Tax Withholding $ 284 145 39 Gross Pay through August 18 $ 136,600 136,800 6,900 1,250 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 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 2) Employees' FICA Withholdings for Medicare Employee Tax Rate Dali Trey Kiesha Chee Total Earnings Subject to Tax Tax Rate Tax Amount Total 3) Employer's FICA Taxes for Social Security Employee Tax Rate Dali Trey Kiesha Chee Earnings Subject to Tax Tax Rate Tax Amount 4) Employer's FICA Taxes for Medicare Employee Tax Rate Dali Trey Kiesha Chee Total Earnings Subject to Tax Tax Rate Tax Amount Total 5) Employer's FUTA Taxes Employee Tax Rate Dali Trey Kiesha Chee 6) Employer's SUTA Taxes Employee Tax Rate Dali Trey Kiesha Chee Earnings Subject to Tax Tax Rate Tax Amount Total Earnings Subject to Tax Tax Rate Tax Amount Total 7) Each Employee's Net (take-home) Pay Employee Dali Trey Kiesha Chee Total Gross Pay $ Income tax withholding 2,000.00 $ 284.00 900.00 $ 145.00 450.00 $ 400.00 $ 3,750.00 39.00 30.00 498.00 FICA- Social Security FICA - Medicare Health Insurance Net Pay 8) Employer's Total Payroll-Related Expense for Each Employee Employee Dali Trey Kiesha Chee Total Gross Pay $ 2,000.00 $ 900.00 $ 450.00 $ 400.00 $ 3,750.00 FICA - Social Security FICA - Medicare FUTA SUTA Health Insurance Pension Total Payroll Expense
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