Payroll Problem 75 points Guides Co. has four employees. FICA Social Security ta

Question

Payroll Problem 75 points Guides Co. has four employees. FICA Social Security taxes are 6.2% of the first $110,100 paid to each employee, and FICA Medicare taxes are1.45% of gross pay. Also, for the first $7,000 to each employee the company’s FUTA taxes are 0.8% and SUTA taxes are 1.75%. The company is preparing its payroll calculations for the week ended September 30. Payroll Records show the following for the company’s four employees. Gross Pay Current pay Name Through 9/23 Gross Pay Income Tax Withholding State Tax Withholding Ahmed $108,500 $2,500 $198 $50 Carlos 36,650 1.515 182 45 June 6,650 475 32 10 Marie 22,200 1,000 68 23 In addition to gross pay, the company must pay one - half of the $50 per employee weekly health insurance ; each employee pays the remaining one - half . The company also contributes an extra 5% of each employee’s gross pay (at no cost to employees) to a pension fund. Employees also paid 6.88 per week in union dues with the exception of Ahmed sin ce he is a supervisor. Required: Compute the following for the week ended September 30 (round amounts to the nearest cent). 1. Each employee’s FICA withholdings for Social Security. 2. Each employee’s FICA withholding for Medicare. 3. Employer’s FICA taxes for Social Security. 4. Employer’s FICA taxes for Medicare. 5. Employer’s FUTA taxes. 6. Employer’s SUTA taxes. 7. Each employee’s net (take - home) pay. 8. Employer’s total payroll - related expense for each employee.

i HAVE SUMMITED THE SAME QUESTION 4 TIMES EACH TIME IT IS DIFFERENT. i AM STRUGGLING TO FIGURE OUT HOW TO DO THIS!

Explanation / Answer

Recognizing the importance of accounting ethics and interpersonal skills while resolving accounting issues:

1. Stakeholders of a company like shareholders, banks, lenders, and suppliers are interested with the information provided in yearly accounting statements. Their interest must be protected on ethical ground. If someone is doing any wrong thing like treating a capital expenditure as a recurring expense for minimizing profit, should be stopped immediately. A strong interpersonal skill is required to make it understandable to the offender.

2. Ethics are important for removing right-or-wrong dilemmas. Ethic teaches why a right journal entry or ledger posting is required instead of wrong accounting. It builds moral power. On the other hand interpersonal skill is required for resolving any complicated accounting issue. Suppose an auditor is explaining his thought to the accountant regarding cash disbursements.

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