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 Gross Pay Income Tax Name through Aug. 18 Gross Pay Withholding $123,900 $5,000 Trey 125,600 9,300 2,000 Chee 3,250 2,000 Dali 2,800 $ 596 282 58 47 Kiesha In addition to gross pay, the company must pay one-half of the $104 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.): 1) Employees' FICA Withholdings for Social Security Earnings Employee Tax Rate Subject to Tex Tax Amount Tax Rate Dali 23 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 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 Dall Trey Klesha Chee Total $ 0.00 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount 9 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Tax Rate ts Dali Troy Kiesha eBook Print Chee References Total $ 0.00 6) Employer's SUTA Taxes Employee Earnings Subject to Tax Tax Rato Tax Amount Tax Rate Dali Trey Klesha Chee Total $ 0.00 7) Each Employee's Net (take-home) Pay Employee Dall Trey Kiesha Chee Total Gross Pay $ 5,000.00 $ 2,800.00 $ 2,000.00 $ 2,000.00 $ 11,800.00 7) Each Employee's Net (take-home) Pay Employee Dali Trey Kiesha Chee Total $ Gross Pay Income tax withholding FICA - Social Security 5,000.00 $ 596.00 2,800.00 $ 2,000.00 $ 282.00 58.00 2,000.00 $ 11,800.00 47.00 983.00 0.00 0.00 FICA - Medicare Health Insurance 0.00 Net Pay $ 0.00 8) Employer's total payroll-related expense for each employee. Employee Dali Trey Kiosha Gross Pay $ 5,000.00 $ 2,800.00 $ 2,000.00 $ 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 $ 5,000.00 $ 2,800.00 $ 2,000.00 $ Chee Total 2,000.00 $ 11,800.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 11,800.00 2,000.00
