Question
Please answer the whole question. Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $118,500 paid to each employee, and
Please answer the whole question.
Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $118,500 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 2.15%. 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 Aug. 18 | Gross Pay | Income Tax Withholding | |||||||||||
Dali | $ | 115,850 | $ | 3,700 | $ | 525 | ||||||||
Trey | 116,500 | 2,000 | 322 | |||||||||||
Kiesha | 8,800 | 620 | 54 | |||||||||||
Chee | 2,750 | 570 | 43 | |||||||||||
In addition to gross pay, the company must pay one-half of the $94 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.
1) Employees' FICA Withholdings for Social Security Earnings Employee Tax Rate Tax Amount Dali Trey Kiesha Chee Subject to Tax S 3,700.00 2,000.00 620.00 570.00 6.20% 6.20% 6.20% 6.20% 124.00 38.44 35.34 Total 197.78 Employees' FICA Withholdings for Medicare Earnings Subject to Tax Tax Amount Employee Dali Trey Kiesha Chee Tax Rate Total 0.00 3) Employer's FICA Taxes for Social Security Earnings Subject to Tax Tax Amount Employee Dali Trey Kiesha Chee Tax Rate Total 0.00 4) Employer's FICA Taxes for Medicare Earnings Subject to Tax mployee Tax Rate Tax Amount Dali Trey Kiesha Chee Total 0.00 ) Employer's FUTA Taxes Earnings Subject to Tax mployee Tax Rate Tax Amount Dali Trey Kiesha Chee Total 0.00 ) Employer's SUTA Taxes Earnings Subject to Tax mployee Tax Rate Tax Amount Dali Trey Kiesha Chee Total 0.00 ) Each Employee's Net (take-home) Pay mployee Gross Pay Income tax withholding FICA - Social Security Dali Kiesha Chee Total S 3,700.00 2,000.00620.00570.00S 6,890.00 944.00 197.78 525.00 322.00 54.00 43.00 124.00 38.44 35.34 ) Each Employee's Net (take-home) Pay Employee Gross Pay Income tax withholding FICA - Social Security FICA Medicare Health Insurance Net Pay Dali Trey Kiesha Chee Total S 3,700.00 2,000.00620.00570.00S 6,890.00 944.00 197.78 0.00 0.00 0.00 525.00 322.00 54.00 43.00 124.00 38.44 35.34 8) Total Payroll Related Expense for Each Employee Employee Gross Pay FICA Social Security FICA Medicare FUTA SUTA Health Insurance Pension Total Payroll Expense Dali Trey Kiesha Chee Total S 3,700.00 0.00 0.00 0.00 0.00 2,000.00S 620.00570.00 S 6,890.00 0.00 0.00 0.00 0.00 0.00 0.00 2,000.00S 620.00570.00 S 6,890.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 S 3,700.00Step by Step Solution
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