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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. In addition to gross pay, the company must pay one-half of the $72 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. 1) Employees' FICA Withholdings for Social Security \begin{tabular}{|l|l|l|l|} \hline Employee & \begin{tabular}{c} Earnings \\ Subject to Tax \end{tabular} & 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 \begin{tabular}{|l|l|l|l|} \hline Employee & \begin{tabular}{c} Earnings \\ Subject to Tax \end{tabular} & Tax Rate & Tax Amount \\ \hline Tax Rate & & & \\ \hline Dali & & & \\ \hline Trey & & & \\ \hline Kiesha & & & \\ \hline Chee & & & \\ \hline \end{tabular} 3) Employer's FICA Taxes for Social Security \begin{tabular}{|l|l|l|l|} \hline Employee & \begin{tabular}{c} Earnings \\ Subject to Tax \end{tabular} & Tax Rate & Tax Amount \\ \hline Tax Rate & & & \\ \hline Dali & & & \\ \hline Trey & & & \\ \hline Kiesha & & & \\ \hline Chee & & & \\ \hline & & Total & \\ \hline \end{tabular} 4) Employer's FICA Taxes for Medicare \begin{tabular}{|l|l|l|l|} \hline Employee & \begin{tabular}{c} Earnings \\ Subject to Tax \end{tabular} & Tax Rate & Tax Amount \\ \hline Tax Rate & & & \\ \hline Dali & & & \\ \hline Trey & & & \\ \hline Kiesha & & & \\ \hline Chee & & & \\ \hline \end{tabular} 5) Employer's FUTA Taxes \begin{tabular}{|l|l|l|l|} \hline Employee & \begin{tabular}{c} Earnings \\ Subject to Tax \end{tabular} & Tax Rate & Tax Amount \\ \hline Tax Rate & & & \\ \hline Dali & & & \\ \hline Trey & & & \\ \hline Kiesha & & & \\ \hline Chee & & & \\ \hline & & Total & \\ \hline \end{tabular} 6) Employer's SUTA Taxes \begin{tabular}{|l|l|l|l|} \hline Employee & \begin{tabular}{c} Earnings \\ Subject to Tax \end{tabular} & Tax Rate & Tax Amount \\ \hline Tax Rate & & & \\ \hline Dali & & & \\ \hline Trey & & & \\ \hline Kiesha & & & \\ \hline Chee & & & \\ \hline & & Total & \\ \hline \end{tabular} 7) Each Employee's Net (take-home) Pay \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{\begin{tabular}{l} Employee \\ Gross Pay \end{tabular}} & \multicolumn{2}{|r|}{ Dali } & \multicolumn{2}{|r|}{ Trey } & \multicolumn{2}{|c|}{ Kiesha } & \multicolumn{2}{|c|}{ Chee } & \multicolumn{2}{|c|}{ Total } \\ \hline & $ & 3,400.00 & $ & 2,600.00 & $ & 1,800.00 & $ & 1,000.00 & $ & 8,800.00 \\ \hline Income tax withholding & & 369.00 & & 411.00 & & 44.00 & & 35.00 & & 859.00 \\ \hline \multicolumn{11}{|l|}{ FICA - Social Security } \\ \hline \multicolumn{11}{|l|}{ FICA - Medicare } \\ \hline \multicolumn{11}{|l|}{ Health Insurance } \\ \hline Net Pay & & & & & & & & & & \\ \hline \end{tabular} 8) Employer's Total Payroll-Related Expense for Each Employee. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{\begin{tabular}{l} Employee \\ Gross Pay \end{tabular}} & \multicolumn{2}{|r|}{ Dali } & \multicolumn{2}{|r|}{ Trey } & \multicolumn{2}{|c|}{ Kiesha } & \multicolumn{2}{|r|}{ Chee } & \multicolumn{2}{|c|}{ Total } \\ \hline & $ & 3,400.00 & $ & 2,600.00 & $ & 1,800.00 & $ & 1,000.00 & $ & 8,800.00 \\ \hline FICA - Social Security & & & & & & & & & & \\ \hline FICA - Medicare & & & & & & & & & & \\ \hline FUTA & & & & & & & & & & \\ \hline SUTA & & & & & & & & & & \\ \hline Health Insurance & & & & & & & & & & \\ \hline Pension & & & & & & & & & & \\ \hline Total Payroll Expense & & & & & & & & & & \\ \hline \end{tabular}
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