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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
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 Income Tax Withholding Name Dali Trey Kiesha Chee Gross Pay through August 18 $ 125,900 134,900 7,300 1,250 Gross Pay $ 3,000 $ 312 2,800 113 1,400 1,800 41 32 In addition to gross pay, the company must pay one-half of the $64 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.): 5) Employer's FUTA Taxes Employee Tax Rate Dali Trey Kiesha Chee Earnings Subject to Tax Tax Rate Tax Amount 0.60% 0.00 0.60% 0.00 0.60% 41.00 32.00 0.60% $ 0.19 Total $ 0.19 6) Employer's SUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate 5.40% Dali 5.40% Trey Kiesha Chee 5.40% 5.40% 7) Each Employee's Net (take-home) Pay Total $ 0.00 Employee Dali Trey Kiesha Chee Total Gross Pay $ 3,000.00 $ 2,800.00 $ 1,400.00 $ 1,800.00 $ 9,000.00 Income tax withholding 312.00 113.00 41.00 32.00 498.00 FICA Social Security 186.00 173.60 86.80 111.60 558.00 FICA - Medicare 43.50 40.60 20.30 26.10 130.50 Health Insurance 0.00 Net Pay $ 0.00 8) Employer's Total Payroll-Related Expense for Each Employee. Employee Dali Trey Kiesha Chee Total Gross Pay $ 3,000.00 $ 2,800.00 $ 1,400.00 $ 1,800.00 $ 9,000.00 FICA Social Security 186.00 173.60 86.80 111.60 558.00 FICA - Medicare 43.50 40.60 20.30 26.10 130.50 FUTA 0.00 0.00 0.00 0.19 0.19 SUTA 0.00 0.00 0.00 0.00 0.00 Health Insurance 0.00 Pension 0.00 Total Payroll Expense $ 3.229.50 $ 3,014.20 $ 1,507.10 $ 1,937.89 $ 9,688.69
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