Required: Be sure to include a description for each journal entry Required: Be s
ID: 2411621 • Letter: R
Question
Required: Be sure to include a description for each journal entry Required: Be sure to show all work for your calculations. Use the Excel template provided to complete your assignment Question# 2-Payroll register: Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $117,000 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 06% 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: In addition to gross pay, the company must pay one-half of the 596 per employee for Current Week Gross Pay rough Aug 1 $115,900 116,550 Income Tax Dahlia 5412 32 900 450 Trey 72 Kiesha 8,900 Chee 2,850 y health insurance. Each employee pays the remaining one-half of the weekly weekl health insurance. The company also contributes an extra 8% of each employee's gross pay at no cost to employees) to a pension fund. Required: 1. Prepare the Payroll Register below for the week ended August 25 to show each Part employee's net (take home) pay. Round your calculations and final answers to 2 decimal places,Explanation / Answer
WORKING NOTES:
1. Calculation of withholding for social security tax for each employee
FICA withholding for Social Security Tax
Dahila
Trey
Kiesha
Chee
Total
Maximum Base (A)
117000
117000
117000
117000
Earned through Aug.18 (B)
115900
116550
8900
2850
Yet under maximum (A-B)
1100
450
108100
114150
Gross Pay earned this week
2900
450
630
580
Subject to Tax
1100
450
630
580
Tax Rate
6.20%
6.20%
6.20%
6.20%
Social Security Tax
68.20
27.90
39.06
35.96
171.12
2. Calculation of withholding for Medicare tax for each employee
FICA withholding for Medicare Taxes
Dahila
Trey
Kiesha
Chee
Total
Gross Pay of Current Week
2900
450
630
580
Tax Rate
1.45%
1.45%
1.45%
1.45%
Medicare Tax
42.05
6.53
9.14
8.41
66.12
Answer- Part 1:
Each Employee's Net (take-home) Pay
Dahila
Trey
Kiesha
Chee
Total
Gross Earnings (this week)
2900
450
630
580
4560
Less: Withholding by Employer
- Income Tax
412
72
55
44
583
- FICA Social Security
68.2
27.9
39.06
35.96
171.12
- FICA Medicare
42.05
6.53
9.14
8.41
66.13
- Health Insurance
48
48
48
48
192
Net Pay
2329.75
295.57
478.8
443.63
3547.75
Answer- Part 2 & 3:
Employer's FUTA and SUTA Taxes for Chee
FUTA
SUTA
Maximum Base (A)
7000
7000
Earned through Aug, 18
2850
2850
Amount Subject to tax (A-B)
4150.00
4150.00
Earned this week
580
580
Subject to tax
580
580
Tax Rate
0.60%
6.20%
Tax Amount
3.48
35.96
FICA withholding for Social Security Tax
Dahila
Trey
Kiesha
Chee
Total
Maximum Base (A)
117000
117000
117000
117000
Earned through Aug.18 (B)
115900
116550
8900
2850
Yet under maximum (A-B)
1100
450
108100
114150
Gross Pay earned this week
2900
450
630
580
Subject to Tax
1100
450
630
580
Tax Rate
6.20%
6.20%
6.20%
6.20%
Social Security Tax
68.20
27.90
39.06
35.96
171.12
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