Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Paloma Company has four employees. FICA Soclal Security taxes are 6.2% of the first $137,700 pald to each employee, and FICA Medicare taxes are 1.45%
Paloma Company has four employees. FICA Soclal Security taxes are 6.2% of the first $137,700 pald 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 two-thirds of the $60 per employee weekly health insurance; each employee pays the remaining one-third. 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 intermedlate calculations and final answers to 2 decimal places.) 4) Employer's FICA Taxes for Medicare 6) Employer's SUTA Taxes 7) Each Employee's Net (take-home) Pay 8) Employer's Total Payroll-Related Expense for Each Employee
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started