Problem 11-3A (Algo) Payroll expenses, withholdings, and taxes LO P2, P3 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 axes 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 Income Tax Withholding Name Dali Trey Kiesha Chee Gross Pay through August 18 $ 124,800 135,300 8,400 2,350 Gross Pay $ 5,000 $ 469 2,400 354 2,000 1,400 50 40 In addition to gross pay, the company must pay one-half of the $86 per employee weekly health insurance; each employee pays the emaining one-half. The company also contributes an extra 8% of each employee's gross pay (at no cost to employees) to a pension und. 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 Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate 6.20% Dali $ 5,000.00 6.20% $ 310.00 Trey 2,400.00 6.20% 148.80 Kiesha Chee 2,000.00 6.20% 124.00 1,400.00 6.20% 86.80 2) Employees' FICA Withholdings for Medicare Total $ 669.60 Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate 1.45% Dali $ 5,000.00 1.45% $ 72.50 Trey 2,400.00 1.45% 34.80 Kiesha 2,000.00 1.45% 29.00 Chee 1,400.00 1.45% 20.30 Total $ 156.60 3) Employer's FICA Taxes for Social Security Employee Earnings Subject to Tax Tax Rate Amount Tax Rate 6.20% Dali $ 5,000.00 6.20% $ 310.00 Trey 2,400.00 6.20% 148.80 Kiesha 2,000.00 6.20% 124.00 Chee 1,400.00 6.20% 86.80 Total $ 669.60 4) Employer's FICA Taxes for Medicare Employee Earnings Subject to Tax Rate Tax Amount Tax Rate 1.45% Dali $ 5,000.00 1.45% $ 72.50 Trey 2,400.00 1.45% 34.80 Kiesha 2,000.00 1.45% 29.00 Chee 1,400.00 1.45% 20.30 Total $ 156.60 5) Employer's FUTA Taxes Employee Tax Rate Dali Trey Kiesha Chee 6) Employer's SUTA Taxes Earnings Subject to Tax Rate Tax Amount 0.60% 0.00 0.60% 0.00 0.60% 0.60% 1,400.00 0.60% $ 8.40 Total $ 8.40 Earnings Employee Subject to Tax Rate Tax Amount Tax Tax Rate 5.40% Dali S 0.00 5.40% Trey 0.00 5.40% Kiesha 5.40% Chee 1,400.00 5.40% $ 75.60 Total $ 75.60 7) Each Employee's Net (take-home) Pay Employee Dali Trey Kiesha Chee Total Gross Pay $ 5,000.00 $ 2,400.00 $ 2,000.00 $ 1,400.00 $ 10,800.00 Income tax 469.00 354.00 50.00 40.00 913.00 withholding FICA- Social 310.00 148.80 124.00 86.80 669.60 Security FICA - Medicare 72.50 34.80 29.00 20.30 156.60 Health Insurance 0.00 Net Pay $ 0.00 8) Employer's Total Payroll-Related Expense for Each Employee. Employee Gross Pay FICA-Social Security FICA- Medicare FUTA SUTA Health Insurance Dali $ 5,000.00 Trey $ 2,400.00 Kiesha $ 2,000.00 Chee $ 1,400.00 Total $ 10,800.00 310.00 148.80 124.00 86.80 669.60 72.50 34.80 29.00 20.30 156.60 0.00 0.00 0.00 8.40 8.40 0.00 0.00 0.00 75.60 75.60 0.00 Pension 0.00 Total Payroll Expense $ 5,382.50 $ 2,583.60 $ 2,153.00 $ 1,591.10 $ 11,710.20