Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first

Question

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 6.20%. 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 Withholding Namethrough Aug. 18 Dali Trey Kiesha Chee $117,250 116,900 9,600 3,550 Gross Pay 3,250 1,600 700 650 S 462 258 61 49 In addition to gross pay, the company must pay one-half of the $110 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

Explanation / Answer

As per policy only first parts of question will be answered

Part 1 Employee’s FICA withholdings for Social Security.

Explanation

Part 2 Employee’s FICA withholdings for Medicare.

Part 3 Employer's FICA taxes for Social Security.

Part 4 Employer's FICA taxes for Medicare.

Employee earnings subject to tax tax rate tax amount Dali 1250 6.20% 77.50 (1250*6.20%) Trey 1600 6.20% 99.20 (1600*6.20%) Kiesha 700 6.20% 43.40 (700*6.20%) Chee 650 6.20% 40.30 (650*6.20%) Total 260.40

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