Problem 9-3A Payroll expenses, withholdings, and taxes LO P2, P3 Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 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. Current Week Name Dali Trey Kiesha Chee Gross Pay through Aug. 18 $ 127,300 127,500 6,900 1,250 Gross Pay $2,000 900 450 400 Income Tax Withholding $ 284 145 39 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.): 1) Employees' FICA Withholdings for Social Security Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total $ 0.00 2) Employees' FICA Withholdings for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total $ 0.00 3) Employer's FICA Taxes for Social Security Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total $ 0.00 4) Employer's FICA Taxes for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total $ 0.00 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate Dali Trey Kiesha Chee Total $ 0.00 6) Employer's SUTA Taxes Earnings Employee Tax Rate Subject to Tax Tax Amount Tax Rate Dali Trey Kiesha Chee Total $ 0.00 Total 7) Each Employee's Net (take-home) Pay Employee Dali Gross Pay $ 2,000.00 Income tax withholding 284.00 EFICA. Social Security $ Trey 900.00 145.00 Kiesha $ 450.00 $ 39.00 Chee 400.00 30.00 $ 3,750.00 498.00 non $ Trey 900.00 145.00 Kiesha $ 450.00 39.00 $ Chee 400.00 30.00 $ 7) Each Employee's Net (take-home) Pay Employee Dali Gross Pay $ 2,000.00 Income tax withholding 284.00 FICA - Social Security FICA - Medicare Health Insurance Net Pay Total 3,750,00 498.00 0.00 0.00 0.00 0.00 $ $ $ 8) Employer's total payroll-related expense for each employee. Employee Kiesha Gross Pay $ 2,000.00 $ 900.00 $ 450.00 FICA - Social Security 0.00 0.00 0.00 FICA - Medicare 0.00 0.00 0.00 FUTA 0.00 0.00 0.00 SUTA 0.00 0.00 0.00 Health Insurance Pension Total Payroll Expense $ 2,000.00 $ 900.00 $ 450,00 Chee 400.00 0.00 0.00 0.00 Total 3,750,00 0.00 0.00 0.00 0.00 0.00 0.00 3,750.00 0.00 $ 400.00 $
