Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 145% 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, Current Week Gross Pay Income Tax through Aug. 18 Gross Pay Withholding $3,300 110,300 2,200 Kiasha 8,400 Chee 2,350 Name Dali Trey $115,650 $ 580 530 459 354 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 remaining one-halt. 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.) CAM 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 Tax Rate Subject to Tax Tax Amount Dali Trey Kiesha Chee Total 2) Employees' FICA Withholdings for Medicare Earnings Employee Tax Rate Subject to Tax Tax Amount Dall Trey Kesha Iches 2) Employees' FICA Withholdings for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Dali Trey Kiesha Chee Total 3) Employer's FICA Taxes for Social Security Employee Earnings Tax Rate Subject to Tax Tax Amount Dali Trey Kiesha Chee Total 4) Employers FICA Taxes for Medicare Earnings Employee Subject to Tax Tax Rate Tax Amount Dali Trey Kiesha Chee Total 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Dali Trey Kiesha Chee Total 6) Employer's SUTA Taxes 6) Employer's SUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Dali Trey Kiesha Chee Total Kiosha Chee Total 7) Each Employee's Net (take-home) Pay Employee Dali Gross Pay $ 3,300.00 $ Income tax withholding 469.00 FICA - Social Security FICA - Medicare Health Insurance Trey 2,200.00 $ 354.00 530.00 $ 580.00 $ 50.00 6,610.00 913.00 40.00 Net Pay FICA - Social Security FICA - Medicare Health Insurance Net Pay Kiesha Chee Total 6,610.00 580.00 $ 530.00 $ 8) Total Payroll Related Expense for Each Employee Employee Dali Trey Gross Pay $ 3,300.00 $ 2,200.00 $ FICA - Social Security FICA - Medicare FUTA SUTA Health Insurance Pension Total Payroll Expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Wiley CPAexcel Exam Review April Study Guide Regulation 2017

Authors: Wiley

2nd Edition

1119369436, 978-1119369431

More Books

Students also viewed these Accounting questions