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