Paloma Co. Stars has four employees. FICA Social Security taxesare 6.2% of the first $117,000 paid to each employee, and FICAMedicare taxes are 1.45% of gross pay. Also, for the first $7,000paid to each employee, the companyâs FUTA taxes are .6% and SUTAtaxes are 6.20%. The company is preparing its payroll calculationsfor the week ended August 25. Payroll records show the followinginformation for the companyâs four employees.
Current Week Name Gross Pay
through Aug. 18 Gross Pay Income Tax Withholding Dahlia $ 115,600 $ 2,600 $ 369 Trey 116,250 750 121 Kiesha 8,300 570 49 Chee 2,250 520 39
In addition to gross pay, the company must pay one-half of the$84 per employee weekly health insurance; each employee pays theremaining one-half. The company also contributes an extra 8% ofeach employeeâs gross pay (at no cost to employees) to a pensionfund.
Required: Compute the following for the week ended August 25.(Round your intermediate calculations and final answers to2 decimal places.):
1) Employees' FICAWithholdings for Social Security Employee Earnings Subject to Tax Tax Rate Tax Amount Dahlia Trey Kiesha Chee Total 2) Employees' FICAWithholdings for Medicare Employee Earnings Subject to Tax Tax Rate Tax Amount Dahlia Trey Kiesha Chee Total 3) Employer's FICA Taxes forSocial Security Employee Earnings Subject to Tax Tax Rate Tax Amount Dahlia Trey Kiesha Chee Total 4) Employer's FICA Taxes forMedicare Employee Earnings Subject to Tax Tax Rate Tax Amount Dahlia 1.45% Trey 1.45% Kiesha 1.45% Chee 1.45% Total 5) Employer's FUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Dahlia 0.60% Trey 0.60% Kiesha 0.60% Chee 0.60% Total 6) Employer's SUTA Taxes Employee Earnings Subject to Tax Tax Rate Tax Amount Dahlia 6.20% Trey 6.20% Kiesha 6.20% Chee 6.20% Total 7) Each Employee's Net(take-home) Pay Employee Dahlia Trey Kiesha Chee Total Gross Pay $2,600.00 $750.00 $570.00 $520.00 $4,440.00 Income tax withholding 369.00 121.00 49.00 39.00 578.00 FICA - Social Security FICA - Medicare Health Insurance Net Pay 8) Total Payroll RelatedExpense for Each Employee Employee Dahlia Trey Kiesha Chee Total Gross Pay $2,600.00 $750.00 $570.00 $520.00 $4,440.00 FICA - Social Security FICA - Medicare FUTA SUTA Health Insurance Pension Total Payroll Expense
Paloma Co. Stars has four employees. FICA Social Security taxesare 6.2% of the first $117,000 paid to each employee, and FICAMedicare taxes are 1.45% of gross pay. Also, for the first $7,000paid to each employee, the companyâs FUTA taxes are .6% and SUTAtaxes are 6.20%. The company is preparing its payroll calculationsfor the week ended August 25. Payroll records show the followinginformation for the companyâs four employees.
Current Week | ||||||||||||
Name | Gross Pay through Aug. 18 | Gross Pay | Income Tax Withholding | |||||||||
Dahlia | $ | 115,600 | $ | 2,600 | $ | 369 | ||||||
Trey | 116,250 | 750 | 121 | |||||||||
Kiesha | 8,300 | 570 | 49 | |||||||||
Chee | 2,250 | 520 | 39 | |||||||||
In addition to gross pay, the company must pay one-half of the$84 per employee weekly health insurance; each employee pays theremaining one-half. The company also contributes an extra 8% ofeach employeeâs gross pay (at no cost to employees) to a pensionfund. |
Required: |
Compute the following for the week ended August 25.(Round your intermediate calculations and final answers to2 decimal places.): |
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