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15 Nov 2018

8. Employer’s totalpayroll-related expense for each employee.

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Casey Durgan
Casey DurganLv2
18 Nov 2018

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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 company’s 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 company’s 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 employee’s 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 $110,100 paid to each employee, and FICAMedicare taxes are 1.45% of gross pay. Also, its FUTA taxes are0.8% and SUTA taxes are 2.15% of the first $7,000 paid to eachemployee. The company is preparing its payroll calculations for theweek ended August 25. Payroll records show the followinginformation for the company’s four employees.

current week

name

 Gross Pay 8/18 Gross Pay Income Tax Withholding
Dahlia 107,200 3800 276
Trey 36250 820 137
Kiesha 8000 630 57
Chee 1950 580 48

In addition to gross pay, the company must pay one-half of the$60 per employee weekly health insurance; each employee pays theremaining one-half. The company also contributes an extra 8% ofeach employee’s gross pay (at no cost to employees) to a pensionfund.

Required:

Compute the following for the week ended August 25 (Round youranswers 2 decimal places)

Employee

 Earnings subject to tax Tax rate Tax amount
Dahlia
Trey
Kiesha
Chee

2)Emmployees' FICA withholding for Medicare

Employee Earnings Subject to Tax Tax Rate Tax Amount
Dahlia
Trey
Kiesha
Chee

3)Employer's FICA taxes for Social Security

Employee Earnings subject to tax tax rate tax amount
Dahlia
Trey
Kiesha
Chee

4) Employer's FICA taxes for Medicare

Employee Earnings subject to Tax Tax Rate Tax Amount
Dahlia 1.45
Trey 1.45
Kiesha 1.45
Chee 1.45

5)Employer's FUTA taxes

Employee Earnings subject to tax Tax Rate Tax Amount
Dahlia

.8
Trey .8
Kiesha .8
Chee .8

6) Employer's SUTA taxes

Employee Earnings subhect to tax Tax Rate Tax Amount
Dahlia 2.15
Trey 2.15
Kiesha 2.15
Chee 2.15

7) Each employee's net (take-home) pay

Employee Dahlia Trey Kiesha Chee Total
Gross Pay 3800 820 630 580 5830
Income Tax Withholding 276 137 57 48 518
FICA -SS
FICA - Medicare
Health Insurance
Net Pay

8) Total payroll related expense for each employee

Employee Dahlia Trey Kiesha Chee Total
Gross Pay 3800 820 630 580 5830
FICA - SS
FICA -Medicare
FUTA
SUTA
Health Insurance
Pension
Total Payroll Expense

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 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 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
Name Gross Pay
through Aug. 18		 Gross Pay Income Tax Withholding
Dali $ 115,800 $ 3,600 $ 511
Trey 116,450 2,050 330
Kiesha 8,700 610 53
Chee 2,650 560 42

In addition to gross pay, the company must pay one-half of the $92 per employee weekly health insurance; each employee pays the remaining one-half. 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 Subject to Tax Tax Rate Tax Amount
Dali
Trey
Kiesha
Chee
Total $0.00
2) Employees' FICA Withholdings for Medicare
Employee Earnings Subject to Tax Tax Rate Tax Amount
Dali
Trey
Kiesha
Chee
Total $0.00
3) Employer's FICA Taxes for Social Security
Employee Earnings Subject to Tax Tax Rate Tax Amount
Dali
Trey
Kiesha
Chee
Total $0.00
4) Employer's FICA Taxes for Medicare
Employee Earnings Subject to Tax Tax Rate Tax Amount
Dali
Trey
Kiesha
Chee
Total $0.00
5) Employer's FUTA Taxes
Employee Earnings Subject to Tax Tax Rate Tax Amount
Dali
Trey
Kiesha
Chee
Total $0.00
6) Employer's SUTA Taxes
Employee Earnings Subject to Tax Tax Rate Tax Amount
Dali
Trey
Kiesha
Chee
Total $0.00
7) Each Employee's Net (take-home) Pay
Employee Dali Trey Kiesha Chee Total
Gross Pay $3,600.00 $2,050.00 $610.00 $560.00 $6,820.00
Income tax withholding 511.00 330.00 53.00 42.00 936.00
FICA - Social Security 0.00
FICA - Medicare 0.00
Health Insurance 0.00
Net Pay $0.00
8) Total Payroll Related Expense for Each Employee
Employee Dali Trey Kiesha Chee Total
Gross Pay $3,600.00 $2,050.00 $610.00 $560.00 $6,820.00
FICA - Social Security 0.00 0.00 0.00 0.00 0.00
FICA - Medicare 0.00 0.00 0.00 0.00 0.00
FUTA 0.00 0.00 0.00 0.00 0.00
SUTA 0.00 0.00 0.00 0.00 0.00
Health Insurance 0.00
Pension 0.00
Total Payroll Expense $3,600.00 $2,050.00 $610.00 $560.00 $6,820.00

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