Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please explain how you got the answers Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to each
please explain how you got the answers
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 $64 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. Required: Compute the following for the week ended August 25. Note: Round your intermediate calculations and final answers to 2 decimal places. 1) Employees' FICA Withholdings for Social Security \begin{tabular}{|c|c|c|c|} \hline Employee & \begin{tabular}{l} Earnings \\ Subject to Tax \end{tabular} & Tax Rate & Tax Amount \\ \hline \multicolumn{4}{|l|}{ Tax Rate } \\ \hline \multicolumn{4}{|l|}{ Dali } \\ \hline \multicolumn{4}{|l|}{ Trey } \\ \hline \multicolumn{4}{|l|}{ Kiesha } \\ \hline \multicolumn{4}{|l|}{ Chee } \\ \hline & & Total & 0.00 \\ \hline \end{tabular} 2) Employees' FICA Withholdings for Medicare 3) Employer's FICA Taxes for Social Security 5) Employer's FUTA Taxes \begin{tabular}{|c|c|c|c|} \hline Employee & \begin{tabular}{c} Earnings \\ Subject to Tax \end{tabular} & Tax Rate & Tax Amount \\ \hline \multicolumn{4}{|l|}{ Tax Rate } \\ \hline \multicolumn{4}{|l|}{ Dali } \\ \hline \multicolumn{4}{|l|}{ Trey } \\ \hline \multicolumn{4}{|l|}{ Kiesha } \\ \hline \multicolumn{4}{|l|}{ Chee } \\ \hline & & Total & 0.00 \\ \hline \end{tabular} 6) Employer's SUTA Taxes 7) Each Employee's Net (take-home) Pay \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline Employee & & Dali & & Trey & & Kiesha & & Chee & & Total \\ \hline Gross Pay & $ & 3,000.00 & $ & 2,800.00 & $ & 1,400.00 & $ & 1,800.00 & $ & 9,000.00 \\ \hline Income tax withholding & & 312.00 & & 113.00 & & 41.00 & & 32.00 & & 498.00 \\ \hline FICA - Social Security & & & & & & & & & & 0.00 \\ \hline FICA - Medicare & & & & & & & & & & 0.00 \\ \hline Health Insurance & & & & & & & & & & 0.00 \\ \hline Net Pay & & & & & & & & & $ & 0.00 \\ \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 Employee & & Dali & & Trey & & iesha & & Chee & & Total \\ \hline Gross Pay & $ & 3,000.00 & $ & 2,800.00 & $ & 1,400.00 & $ & 1,800.00 & $ & 9,000.00 \\ \hline FICA - Social Security & & 0.00 & & 0.00 & & 0.00 & & 0.00 & & 0.00 \\ \hline FICA - Medicare & & 0.00 & & 0.00 & & 0.00 & & 0.00 & & 0.00 \\ \hline FUTA & & 0.00 & & 0.00 & & 0.00 & & 0.00 & & 0.00 \\ \hline SUTA & & 0.00 & & 0.00 & & 0.00 & & 0.00 & & 0.00 \\ \hline Health Insurance & & & & & & & & & & 0.00 \\ \hline Pension & & & & & & & & & & 0.00 \\ \hline Total Payroll Expense & $ & 3,000.00 & $ & 2,800.00 & $ & 1,400.00 & s & 1,800.00 & $ & 9,000.00 \\ \hline \end{tabular} 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