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Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $132,900 paid to each employee, and FICA Medicare taxes are
Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $132,900 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 Gross Pay through Name August 18 Gross Pay Dali $ 123,700 $ 5,200 Trey Kiesha Chee 130,500 9,500 3,450 2,400 1,800 1,800 Income Tax Withholding $ 625 266 60 48 In addition to gross pay, the company must pay one-half of the $108 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. Note: Round your intermediate calculations and final answers to 2 decimal places. 1) Employees FICA Withholdings for Social Security Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate 6.20% Dali $ 5,200.00 6.20% 322.40 Trey 2,400.00 6.20% 148.80 Kiesha 1,800.00 6.20% 111.60 Chee 1,800.00 6.20% 111.60 Total 694.40 2) Employees' FICA Withholdings for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate 1.45% Dali $ 5,200.00 1.45% $ 75.40 Trey 2,400.00 1.45% 34.80
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