Question
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%
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 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.
Name | Gross Pay through August 18 | Current Week | |
---|---|---|---|
Gross Pay | Income Tax Withholding | ||
Dali | $ 123,700 | $ 5,200 | $ 625 |
Trey | 130,500 | 2,400 | 266 |
Kiesha | 9,500 | 1,800 | 60 |
Chee | 3,450 | 1,800 | 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 employees 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 \begin{tabular}{|l|l|l|l|} \hline Employee & Earnings Subject to Tax & Tax Rate & Tax Amount \\ \hline Tax Rate & & & \\ \hline Dali & & & \\ \hline Trey & & & \\ \hline Kiesha & & & \\ \hline Chee & & & \\ \hline & & Total & \\ \hline \end{tabular} 2) Employees' FICA Withholdings for Medicare 3) Employer's FICA Taxes for Social Security \begin{tabular}{|l|l|l|l|} \hline Employee & Earnings Subject to Tax & Tax Rate & Tax Amount \\ \hline Tax Rate & & & \\ \hline Dali & & & \\ \hline Trey & & & \\ \hline Kiesha & & & \\ \hline Chee & & & \\ \hline & & Total & \\ \hline \hline \end{tabular} 4) Employer's FICA Taxes for Medicare \begin{tabular}{|l|l|l|l|} \hline Employee & Earnings Subject to Tax & Tax Rate & Tax Amount \\ \hline Tax Rate & & & \\ \hline Dali & & & \\ \hline Trey & & & \\ \hline Kiesha & & & \\ \hline Chee & & & \\ \hline & & Total & \\ \hline & & & \\ \hline \hline \end{tabular} 5) Employer's FUTA Taxes \begin{tabular}{|l|l|l|l|} \hline Employee & Earnings Subject to Tax & Tax Rate & Tax Amount \\ \hline Tax Rate & & & \\ \hline Dali & & & \\ \hline Trey & & & \\ \hline Kiesha & & & \\ \hline Chee & & & \\ \hline & & Total & \\ \hline \hline \end{tabular} 6) Employer's SUTA Taxes 7) Each Employee's Net (take-home) Pay 8) Employer's total payroll-related expense for each employee
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