Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Problem 9-3A (Algo) Payroll expenses, withholdings, and taxes LO P2, P3 Paloma Company has four employees. FCA Social Security taxes are 62% of the first

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Problem 9-3A (Algo) Payroll expenses, withholdings, and taxes LO P2, P3 Paloma Company has four employees. FCA Social Security taxes are 62% of the first $137700 paid to each employee, anid 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 einployee weekly health insurance; each employee pays the remaining one-half. The company also contibutes 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 intermediote calculations and final answers to 2 decimol ploces.). 1) Employees" FICA Withholdings for Social Security \begin{tabular}{|l|l|l|l|} \hline Employee & \multicolumn{1}{|c|}{\begin{tabular}{c|} Eamings \\ Subject to Tax \end{tabular}} & Tax Rate & Tax Amount \\ \hline Tax Rate & & & \\ \hline Dali & & & \\ \hline Trey & & & \\ \hline Kiesha & & & \\ \hline Chee & & & \\ \hline & & Total & \\ \hline \end{tabular} 2) Employees' FICA Withholdings for Medicare 3) Employer's FICA Taxes for Social Security 4) Employer's FICA Taxes for Medicare 5) Employer's FUTA Taxes 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 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

Question

What is a depositary receipt?

Answered: 1 week ago

Question

Determine miller indices of plane A Z a/2 X a/2 a/2 Y

Answered: 1 week ago