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

ID: 2376473 • Letter: P

Question

Paloma Co. Stars has four employees. FICA Social Security taxes are 6.2% of the first $110,100 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, its FUTA taxes are 0.8% and SUTA taxes are 2.15% of the first $7,000 paid to each employee. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the company%u2019s four employees.




In addition to gross pay, the company must pay one-half of the $70 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 7% of each employee%u2019s gross pay (at no cost to employees) to a pension fund.


1) Employees FICA withholdings for social security


     Employee               Earnings Subject to tax        Tax Rate          Tax Amount

  

      Dahlia                                   6.20%


      Trey


       Kiesha


       Chee



Current Week Name Gross Pay
through 8/18 Gross Pay Income Tax Withholding    Dahlia $ 108,500 $ 2,500 $ 289    Trey 36,900 950 150    Kiesha 7,350 500 44    Chee 1,300 450 35

Explanation / Answer

compute the following for the week ended September 30.

1. Each employee's FICA witholding for Social Security