Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help ! 1 nts eBook Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee
Please help !
1 nts eBook Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee and PICA Medicare taxes are 145% 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. Current Week Gross Pay through Tecome Tax Name August 18 Cross Pay withholding Dali $ 136,600 $ 2,000 $ 284 Trey 136,800 900 145 Kisha 6.900 39 Chee 1.250 400 30 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 intermediate calculations and final answers to 2 decimal places.) 450 Print nferences Tax Amount 1) Employees' FICA Wahholdings for Social Security Employee Earnings Tax Rate Subject to Tex Tax Rate 6.20% Dali Trey 900.00 Kesha 450.00 Chee 400.00 Total 0.00 0.00 0.00 $ $ Prev 2 IE Total 54.38 3) Employer's FICA Taxos for Social Security Employee Earnings Subject to Tax Tax Rato Tax Amount Tax Rate 6.20% Dall Trey 0.00 Kiesha 900.00 450.00 400.00 0.00 Chee 0.00 Total $ 0.00 4) Employer's FICA Taxes for Medicare 2 2 5) Employer's FUTA Trus Employee Earnings Subject to Tax Tax Rate Tax Amount 0.71 points 0.60% 0.00 0.60% Tax Rate Dall Trey Kesho Chee 0.00 0.60% eBook 400.00 Total $ 0.00 Print 5) Employer's SUTA Taxes References Employee Earnings Subject to Tax Tax Rate Tax Amount 5.40% 5.40% $ Tax Rate Dali Trey Kiesha 0.00 0.00 6.40% Chee 400.00 Total s 0.00 Chee Total 7) Each Employee's Net (take-home) Pay Employee Dall Gross Pay $ 2,000.00 $ Income tax withholding 284.00 Trey 900.00 $ 145.00 Klesha 450.00 $ 39.00 400.00 $ 30.00 3.750.00 408.00 7) Each Employee's Net (tako-homo) Pay Employee Dall Trey Klesha Chee Total $ 450.00 $ 400.00 $ Gross Pay Income tax withholding FICA - Social Security 2,000.00 $ 284.00 900.00 $ 145.00 3,750.00 39.00 30.00 498.00 0.00 FICA - Medicare 29.00 13.05 6.53 5.80 54.38 Health Insurance 0.00 Net Pay $ 0.00 Chee Total $ 400.00 $ 8) Employer's Total Payroll-Related Expense for Each Employee Employee Dali Trey Kiesha Gross Pay $ 2,000.00 $ 900.00 S 450.00 FICA - Social Security 0.00 0.00 0.00 FICA - Medicare 29.00 13.05 6.53 FUTA 0.00 0.00 0.00 SUTA 0.00 0.00 0.00 3,750.00 0.00 0.00 5.80 54.38 0.00 0.00 0.00 0.00 Health Insurance 0.00 Pension 0.00 Total Payroll Expense $ 2,029.00 $ 913.05 $ 456.53 $ $ 405.80 3,804.38 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