Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Problem 9 - 3 A ( Algo ) Payroll expenses, withholdings, and taxes LO P 2 , P 3 Paloma Company has four employees. FICA

Problem 9-3A (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 companys 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 companys four employees.
Current Week
Name Gross Pay through August 18 Gross Pay Income Tax Withholding
Dali $ 123,700 $ 5,200 $ 625
Trey 135,3002,400266
Kiesha 9,5001,80060
Chee 3,4501,80048
In addition to gross pay, the company must pay one-half of the $108 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employees gross pay (at no cost to employees) to a pension fund.
Required:
Compute the following for the week ended August 25.
Note: Round your intermediate calculations and final answers to 2 decimal places.
Employees' FICA Withholdings for Social Security
\table[[,\table[[Earnings],[Subject to Tax]],Tax Rate,Tax Amount,],[Employee,,,],[Tax Rate,,,,],[Trey,,,,],[Kiesha,,,,],[Chee,,,,],[,,,,]]
Employees' FICA Withholdings for Medicare
\table[[2) Employees' FICA Withholdings for Medicare,,,,],[Employee,\table[[Earnings],[Subject to Tax]],Tax Rate,Tax Amount,],[Tax Rate,,,],[Dali,,,,],[Trey,,,,],[Kiesha,,,,],[Chee,,,,],[,,Total,$,]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions