Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help! 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

please help!

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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 $102 per employee weekly health insurance; each employee pays th 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. (Round your intermediate calculations and final answers to 2 decimal places.): 1) Employees' FICA Withholdings for Social Security 2) Employees' FICA Withholdings for Medicare \begin{tabular}{|l|l|l|l|l|l|} \hline Employee & \multicolumn{1}{|c|}{EarningsSubjecttoTax} & Tax Rate & Tax Amount & & \\ \hline Tax Rate & & & & & \\ \hline Dali & & & & & \\ \hline Trey & & & & & \\ \hline Kiesha & & & & & \\ \hline Chee & & & & & \\ \hline & & & & & \\ \hline \end{tabular} 3) Employer's FICA Taxes for Social Security \begin{tabular}{|l|l|l|l|} \hline Employee & \multicolumn{1}{|c|}{EarningsSubjecttoTax} & Tax Rate & Tax Amount \\ \hline Tax Rate & & & \\ \hline Dali & & & \\ \hline Trey & & & \\ \hline Kiesha & & & \\ \hline Chee & & Total & $ \\ \hline & & & 0.00 \\ \hline \end{tabular} 4) Employer's FICA Taxes for Medicare \begin{tabular}{|l|l|l|l|l|l|} \hline & & & & & \\ \hline 5) Employer's FUTA Taxes & \multicolumn{1}{|c|}{EarningsSubjecttoTax} & Tax Rate & Tax Amount & & \\ \hline Employee & & & & & \\ \hline Tax Rate & & & & & \\ \hline Dali & & & & & \\ \hline Trey & & & & & \\ \hline Kiesha & & & & & \\ \hline Chee & & & & & \\ \hline & & & & & \\ \hline \end{tabular} 6) Employer's SUTA Taxes 8) Employer's Total Payroll-Related Expense for Each Employee

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Im Just A Girl Who Loves Auditing And Coffee

Authors: Michael Happiness

1st Edition

B08HT8643K, 979-8684238604

More Books

Students also viewed these Accounting questions

Question

What are the APPROACHES TO HRM?

Answered: 1 week ago