Paloma Co. Stars has four employees. FICA Social Security taxes are 6.2% of the
ID: 2471561 • Letter: P
Question
Paloma Co. Stars 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 .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.
In addition to gross pay, the company must pay one-half of the $74 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.
Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal places.):
1. Employees FICA withholding for social security/ FICA withholding medicare/FICA tax for social security/ and need FICA taxes for medicare
Employee Earning subject tax Tax Rate Tax amount
Dahlia
Trey
Kiesha
Chee
Current Week Name Gross Paythrough Aug. 18 Gross Pay Income Tax Withholding Dahlia $ 116,600 $ 2,350 $ 334 Trey 116,000 1,000 161 Kiesha 7,800 520 45 Chee 1,750 470 35
Explanation / Answer
Current Week Pay Current Week Pay Current Week Pay Current Week Pay Name of employee Gross pay through Aug 18 Gross Pay Week of Aug 25 Total Cumulative Gross Pay Weekly Amt Subject ro FICA for the week(Gross less than $117000) FICA Tax @6.2% of the subject amt$ Medicare Tax @1.45% Gross Pay Weekly Gross Pay subject to FUTA & SUTA(less than $7000) FUTA 0.6% SUTA 6.2% Dahila 116,600 2,350 118,950 400 25 34 - Trey 116,000 1,000 117,000 1,000 62 15 - Kiesha 7,800 520 8,320 520 32 8 - Chee 1,750 470 2,220 470 29 7 470 3 29
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