Problem PR-A (2020) * Peppy Company pays its employees on the 15th and last day of each month. Employees gross pay is subject to these taxes: Tax FICA - Social Security FICA - Medicare Federal Unemployment State Unemployment Rate 6.20% 1.45% 0.60% 4.00% Applied to First $137,700 ALL Wages First $7,000 First $7,000 The company is preparing its payroll for the period ending October 31, 2020. Payroll records show the following information for the company's three employees. Name Manny Moe Jack Current Pay Period Gross Pay thru 10/15/20 Gross Pay Federal Tax 6,840$ 360 3% 38,000 2,000 10% 133,000 7,000 20% State Tax 2% 3% 5% Required (using an electronic spreadsheet) 1) For the current pay period, compute the following, for each employee: a) Net pay for the current pay period. b) Total cost, to the employer, including wages. 2) In addition to the statutory deductions, each employee must pay one-half of the $200 (per pay period) cost for medical and dental insurance. Insurance is a pre-tax deduction. For the current pay period, compute net pay for each employee. What is the difference between this net pay and the net pay in (1a)? 3) (Independent of Requirement #2.) Peppy Company offers a 401(k) retirement plan to its employees. The company matches all amounts withheld from the employees up to 3% of each employee's gross pay. All employees contribute the maximum amount. Any amounts contributed currently are FICA taxable but are not taxable for federal or state income tax purposes. For the current pay period, compute net pay for each employee. What is the difference between this net pay and the net pay in (1a)? Problem PR-A (2020) 1 Manny Moe Jack Gross Pay $ 360.00 $ 2,000.00 $ 7,000.00 $ $ 291.40 Less Deductions: FICA - Social Security FICA - Medicare Federal Income Tax State Income Tax Total Deductions 22.32 5.22 10.80 7.20 45.54 $ Net Pay $ 314.46 Manny Moe Jack b Gross Pay $ 360.00 $ 2,000.00 $ 7,000.00 291.40 Fringe Benefits: FICA - Social Security FICA - Medicare Federal Unemployment State Unemployment 22.32 5.22 0.96 6.40 Total Cost to Employer $ 394.90 Problem PR-A (2020) 2 Manny Moe Jack Gross Pay $ 360.00 $ 2,000.00 $ 7,000.00 Less: Health Insurance (100.00) (100.00) (100.00) Taxable Pay $ 260.00 $ 1,900.00 $ 6,900.00 $ $ 291.40 Less Deductions: FICA - Social Security FICA - Medicare Federal Income Tax State Income Tax Total Deductions 16.12 3.77 7.80 5.20 32.89 $ Net Pay $ 227.11 True Cost of Health Insurance $ 87.35 3 Manny Moe Jack Gross Pay $ 360.00 $ 2,000.00 $ 7,000.00 $ $ 291.40 Less Deductions: FICA - Social Security FICA - Medicare Retirement Contribution Federal Income Tax State Income Tax Total Deductions 60.00 210.00 22.32 5.22 10.80 10.48 6.98 55.80 $ Net Pay $ 304.20 True Cost of Retirement Contrik $ 10.26 Please do similar to spreadsheet and show formulas Problem PR-A (2020) * Peppy Company pays its employees on the 15th and last day of each month. Employees gross pay is subject to these taxes: Tax FICA - Social Security FICA - Medicare Federal Unemployment State Unemployment Rate 6.20% 1.45% 0.60% 4.00% Applied to First $137,700 ALL Wages First $7,000 First $7,000 The company is preparing its payroll for the period ending October 31, 2020. Payroll records show the following information for the company's three employees. Name Manny Moe Jack Current Pay Period Gross Pay thru 10/15/20 Gross Pay Federal Tax 6,840$ 360 3% 38,000 2,000 10% 133,000 7,000 20% State Tax 2% 3% 5% Required (using an electronic spreadsheet) 1) For the current pay period, compute the following, for each employee: a) Net pay for the current pay period. b) Total cost, to the employer, including wages. 2) In addition to the statutory deductions, each employee must pay one-half of the $200 (per pay period) cost for medical and dental insurance. Insurance is a pre-tax deduction. For the current pay period, compute net pay for each employee. What is the difference between this net pay and the net pay in (1a)? 3) (Independent of Requirement #2.) Peppy Company offers a 401(k) retirement plan to its employees. The company matches all amounts withheld from the employees up to 3% of each employee's gross pay. All employees contribute the maximum amount. Any amounts contributed currently are FICA taxable but are not taxable for federal or state income tax purposes. For the current pay period, compute net pay for each employee. What is the difference between this net pay and the net pay in (1a)? Problem PR-A (2020) 1 Manny Moe Jack Gross Pay $ 360.00 $ 2,000.00 $ 7,000.00 $ $ 291.40 Less Deductions: FICA - Social Security FICA - Medicare Federal Income Tax State Income Tax Total Deductions 22.32 5.22 10.80 7.20 45.54 $ Net Pay $ 314.46 Manny Moe Jack b Gross Pay $ 360.00 $ 2,000.00 $ 7,000.00 291.40 Fringe Benefits: FICA - Social Security FICA - Medicare Federal Unemployment State Unemployment 22.32 5.22 0.96 6.40 Total Cost to Employer $ 394.90 Problem PR-A (2020) 2 Manny Moe Jack Gross Pay $ 360.00 $ 2,000.00 $ 7,000.00 Less: Health Insurance (100.00) (100.00) (100.00) Taxable Pay $ 260.00 $ 1,900.00 $ 6,900.00 $ $ 291.40 Less Deductions: FICA - Social Security FICA - Medicare Federal Income Tax State Income Tax Total Deductions 16.12 3.77 7.80 5.20 32.89 $ Net Pay $ 227.11 True Cost of Health Insurance $ 87.35 3 Manny Moe Jack Gross Pay $ 360.00 $ 2,000.00 $ 7,000.00 $ $ 291.40 Less Deductions: FICA - Social Security FICA - Medicare Retirement Contribution Federal Income Tax State Income Tax Total Deductions 60.00 210.00 22.32 5.22 10.80 10.48 6.98 55.80 $ Net Pay $ 304.20 True Cost of Retirement Contrik $ 10.26 Please do similar to spreadsheet and show formulas