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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 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.

Current Week
Name Gross Pay through August 18 Gross Pay Income Tax Withholding
Dali $ 125,100 $ 3,500 $ 426
Trey 134,300 3,400 379
Kiesha 8,100 1,800 48
Chee 2,050 1,600 38

In addition to gross pay, the company must pay one-half of the $80 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.

5)

Employer's FUTA Taxes

Employee Earnings Subject to Tax Tax Rate Tax Amount
Tax Rate
Dali
Trey
Kiesha
Chee
Total $0.00
6) Employer's SUTA Taxes
Employee Earnings Subject to Tax Tax Rate Tax Amount
Tax Rate
Dali
Trey
Kiesha
Chee
Total $0.00
7) Each Employee's Net (take-home) Pay
Employee Dali Trey Kiesha Chee Total
Gross Pay $3,500.00 $3,400.00 $1,800.00 $1,600.00 $10,300.00
Income tax withholding 426.00 379.00 48.00 38.00 891.00
FICA - Social Security 0.00
FICA - Medicare 0.00
Health Insurance 0.00
Net Pay $0.00
8) Employers Total Payroll-Related Expense for Each Employee.
Employee Dali Trey Kiesha Chee Total
Gross Pay $3,500.00 $3,400.00 $1,800.00 $1,600.00 $10,300.00
FICA - Social Security 0.00 0.00 0.00 0.00 0.00
FICA - Medicare 0.00 0.00 0.00 0.00 0.00
FUTA 0.00 0.00 0.00 0.00 0.00
SUTA 0.00 0.00 0.00 0.00 0.00
Health Insurance 0.00
Pension 0.00
Total Payroll Expense $3,500.00 $3,400.00 $1,800.00 $1,600.00 $10,300.00

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