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 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 Income Tax Withholding Gross Pay through Aug. 18 Gross Pay Name Dali Trey Kiesha Chee $115,600 116,250 8, 300 2,250 $3,200 2,250 570 520 $ 454 362 49 39 In addition to gross pay, the company must pay one-half of the $84 per employee weekly health insurance; each employee pays the emaining 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 Earnings Tay Rate Tax Amount

Explanation / Answer

1.Employee FICA withholding for Social Secutiry Employee Employee earnings Tax rate Tax subject to tax Dali 2900.00 6.20% 179.80 Trey 2250.00 6.20% 139.50 Kiesha 570.00 6.20% 35.34 Chee 520.00 6.20% 32.24 Total 6240.00 386.88 2.Employee FICA withholding for Medicare Employee Employee earnings Tax rate Tax subject to tax Dali 3200.00 1.45% 46.40 Trey 2250.00 1.45% 32.63 Kiesha 570.00 1.45% 8.27 Chee 520.00 1.45% 7.54 Total 6540.00 94.83 3.Employer's FICA taxes for for Social Secutiry Employee Employee earnings Tax rate Tax subject to tax Dali 2900.00 6.20% 179.80 Trey 2250.00 6.20% 139.50 Kiesha 570.00 6.20% 35.34 Chee 520.00 6.20% 32.24 Total 6240.00 386.88 4.Employer's FICA taxes for Medicare Employee Employee earnings Tax rate Tax subject to tax Dali 3200.00 1.45% 46.40 Trey 2250.00 1.45% 32.63 Kiesha 570.00 1.45% 8.27 Chee 520.00 1.45% 7.54 Total 6540.00 94.83 5.Employer's FUTA taxes Employee Employee earnings Tax rate Tax Amount subject to tax Dali 0.00 0.60% 0.00 Trey 0.00 0.60% 0.00 Kiesha 0.00 0.60% 0.00 Chee 520.00 0.60% 3.12 Total 520.00 3.12 6.Employer's SUTA taxes Employee Employee earnings Tax rate Tax Amount subject to tax Dali 0.00 2.15% 0.00 Trey 0.00 2.15% 0.00 Kiesha 0.00 2.15% 0.00 Chee 520.00 2.15% 11.18 Total 520.00 11.18 Since the earnings limit for FUTA and SUTAtaxes is $7,000 FUTA and SUTA taxes are payable only on earnings of Chee. 7. Each employee's net (Take home) pay Dali Trey kiesha Che Total Gross Pay 3200.00 2250.00 570.00 520.00 6540.00 Income Tax withholding 454.00 362.00 49.00 39.00 904.00 FICA - Social Security 179.80 139.50 35.34 32.24 386.88 FICA - Medicare 46.40 32.63 8.27 7.54 94.83 Health Insurance 42.00 42.00 42.00 42.00 168.00 Net Pay 2477.80 1673.88 435.40 399.22 4986.29 8. Total pay related expenses for each employee : Dali Trey kiesha Che Total Gross Pay 3200.00 2250.00 570.00 520.00 6540.00 FICA - Social Security 179.80 139.50 35.34 32.24 386.88 FICA - Medicare 46.40 32.63 8.27 7.54 94.83 FUTA 0.00 0.00 0.00 3.12 3.12 SUTA 0.00 0.00 0.00 11.18 11.18 Health Insurance 42.00 42.00 42.00 42.00 168.00 Pension 256.00 180.00 45.60 41.60 523.20 Total Payroll Expenses 3724.20 2644.13 701.21 657.68 7727.21

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