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 $118,500 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 2.15%. 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. Name Dalt Trey Kiesha Chee Gross Pay through Aug. 18 $117,400 117,600 6,900 1,250 Current Week Income Tax Gross Pay Withholding $2,000 $ 284 900 145 450 39 400 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.): Answer is not complete. 1) Employees' FICA Withholdings for Social Security Earnings Employee Tax Subject to Tax Rate Amount Tax $ 1,100.00 6.20% 68.20 Trey 900.00 6.20% 55.80 Kiesha 450.00 6.20% 27.90 Dal Tax Amount 2) Employees' FICA Withholdings for Medicare Earnings Employee Subject to Tax Rate Tax Dali $ 2,000.00 1.45% Trey 900.00 1.45% Kiesha 450.00 1.45% $ 29,00 13.05 6.53 Chee 400.00 1.45% 5.80 Total $ 54.38 3) Employer's FICA Taxes for Social Security Earnings Employee Subject to Tax Rate Tax Dali $ 1,100.00 6.20% Trey 900.00 6.20% Tax Amount 68.20 55.80 Kiesha 450.00 6.20% 27.90 Chee 400.00 6.20% 24.80 Total 176.70 Tax Rate 4) Employer's FICA Taxes for Medicare Earnings Employee Subject to Tax $ 2,000.00 Trey 900.00 Tax Amount Dali 1.45% $ 29.00 1.45% 13.05 Kiesha 450.00 1.45% 6.53 Chee 400.00 1.45% 5.80 Total $ 54.38 Tax Rate Tax Amount 5) Employer's FUTA Taxes Earnings Employee Subject to Tax Dali 0.00 Trey 0.00 Kiesha 0.00 Chee 400.00 Total $ 0.00 Tax Rate Tax Amount 6) Employer's SUTA Taxes Earnings Employee Subject to Tax Dali $ 0.00 Trey 0.00 Kiesha 0.00 Chee 400.00 Total $ 0.00 Trey Kiesha Chee Total 900.00 7) Each Employee's Net (take-home) Pay Employee Dali Gross Pay $ 2,000.00 $ Income tax 284.00 withholding FICA - Social Security 68.20 FICA - Medicare 29.00 $ 450.00 $ 400.00 $ 3,750.00 145.00 39.00 30.00 498.00 55.80 27.90 24.80 176.70 13.05 6.53 5.80 54.38 Health Insurance 40.00 X 40.00 X 40.00 40.00 160.00 Net Pou 1 578 An KAR 15 lc 236 1$ 290 un ? ARO 92 Chee 400.00 Total $ 0.00 7) Each Employee's Net (take-home) Pay Employee Dali Trey Kiesha Chee Total $ 2,000.00 $ 900.00 $ 450.00 $ 400.00 $ 3,750.00 284.00 145.00 Gross Pay Income tax withholding FICA - Social Security FICA - Medicare 39.00 30.00 498.00 68.20 55.80 27.90 24.80 176.70 29.00 13.05 6.53 5.80 54.38 Health Insurance 40.00 X 40.00 40.00 40.00 X 160.00 Net Pay $ 1,578.80 X $ 646.15 336.58 $ 299.40 $ 2,860.92 Kiesha Chee Total 8) Total Payroll Related Expense for Each Employee Employee Dali Trey Gross Pay $ 2,000.00 $ 900.00 FICA - Social Security 68.20 55.80 FICA - Medicare 29.00 13.05 FUTA 0.00 0.00 $ 450.00 $ 400.00 $ 3,750.00 27.90 176.70 24.80 5.80 6.53 54.38 0.00 0.00 0.00 SUTA 0.00 0.00 0.00 Health Insurance Pension Total Payroll Expense (20.00) 160.00 (20.00) 72.00 $ 1.020.85 0.00 (20.00) 36.00 (20.00) 32.00 442.60 0.00 (80.00) 300.00 $ 2,237.20 $ 500.43 $ $ 4,201.08