Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 145%

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 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 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 Gross Pay through A Current Week Income Tax OSS Pay withholding 15 Kiesha In addition to gross pay, the company must pay one-half of the S100 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 Employee Earnings Sablect to Tat 1 Tax Rate Tax Amor 6209 4,300.00 2666 6 20% 5 205 30000 235 501 100000 Total 626 20 21 Employer FICA Withholdings for Medicare Earnings 1 Tax Rate Tax Amount fund. Required: Compute the following for the week ended August 25. (Round your intermediate calculati places.) 1) Employees' FICA Withholdings for Social Security Employee Earnings Subject to Tax Tax Rate Tax Amount S Tax Rate Dali Trey Kiesha Chee 4300.00 3,800.00 1,000.00 1,000.00 6.20% 6.20% 6.20% 620% 620% Total 266.60 235.60 62.00 62.00 626 20 ances $ 2) Employees' FICA Withholdings for Medicare Employee Earnings Subject to Tay Tax Rate Tax Amount Tax Rate Dal 1.45 $ Trey 1 45% $ 69 60 4,800.00 3 800 00 1,000.00 1,000.00 1.45% 55.10 Chee 1.45% 14.50 1.45% Total 14 50 $ 153.70 Employer's FICA Taxes for Social Security Subject to TamTax Rate Tax Amount S430000 38000 6 20% 6209 620 266 60 235 60 62.00 52.00 6.2015

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

Financial Analysis And Decision Making

Authors: David E. Vance

1st Edition

0071406654, 9780071406659

More Books

Students also viewed these Accounting questions

Question

The relevance of the information to the interpreter

Answered: 1 week ago

Question

The background knowledge of the interpreter

Answered: 1 week ago