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 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.image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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 Gross Pay through August 18 $ 125,400 135,300 7,800 1,750 Current Week Income Tax Gross Pay Withholding $ 5,600 $ 383 2,400 403 1,600 45 2,000 35 In addition to gross pay, the company must pay one-half of the $74 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 Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total 2) Employees' FICA Withholdings for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total Tax Amount 3) Employer's FICA Taxes for Social Security Employee Earnings Tax Rate Subject to Tax Tax Rate Dali Trey Kiesha Chee Total 4) Employer's FICA Taxes for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total 6) Employer's SUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total Trey Kiesha Chee Total $ 2,400.00 $ 1,600.00 $ 2,000.00 S 11,600.00 403.00 45.00 35.00 866.00 7) Each Employee's Net (take-home) Pay Employee Dali Gross Pay $ 5,600.00 Income tax withholding 383.00 FICA - Social Security FICA - Medicare Health Insurance Net Pay Chee Total $ 8) Employer's Total Payroll-Related Expense for Each Employee. Employee Dali Trey Kiesha Gross Pay $ 5,600.00 $ 2,400.00 $ 1,600.00 FICA - Social Security FICA - Medicare FUTA 2,000.00 $ 11,600.00 SUTA Health Insurance Pension Total Payroll Expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Personal Financial Planning

Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk

15th Edition

9780357438480

Students also viewed these Accounting questions