Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first
ID: 2519182 • Letter: P
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.
In addition to gross pay, the company must pay one-half of the $62 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.
Required:
Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal places.):
Current Week Name Gross Paythrough Aug. 18 Gross Pay Income Tax Withholding Dali $ 117,500 $ 2,100 $ 298 Trey 117,700 800 129 Kiesha 7,200 460 40 Chee 1,150 410 31 1) Employees' FICA Withholdings for Social Security Earnings Subject to Tax Employee Tax Rate Tax Amount Dali Trey Kiesha Chee Total 2) Employees' FICA Withholdings for Medicare Earnings Subject to Tax Employee Tax Rate Tax Amount Dali Trey Kiesha Chee Total
Explanation / Answer
Name Gross Pay Current Week Income Tax Withholding through Aug. 18 Gross Pay Dali 117,500 2,100 298 Trey 117,700 800 129 Kiesha 7,200 460 40 Chee 1,150 410 31 Ans 1 Employees FICA withholding Employee Earning sub to tax E Tax rate T Tax amt T*E Dali $1,000 6.20% $62.00 (118500-117500) Trey 800 6.20% $49.60 Kiesha 460 6.20% $28.52 Chee 410 6.20% $25.42 Total $165.54 ans 2 for Medicare Employee Earning sub to tax E Tax rate T Tax amt T*E Dali $2,100 1.45% $30.45 Trey 800 1.45% $11.60 Kiesha 460 1.45% $6.67 Chee 410 1.45% $5.95 Total $54.67 ans 3 Employer Employee Earning sub to tax E Tax rate T Tax amt T*E Dali $1,000 6.20% $62.00 (118500-117500) Trey 800 6.20% $49.60 Kiesha 460 6.20% $28.52 Chee 410 6.20% $25.42 Total $165.54 ans 4 for Medicare Employee Earning sub to tax E Tax rate T Tax amt T*E Dali $2,100 1.45% $30.45 Trey 800 1.45% $11.60 Kiesha 460 1.45% $6.67 Chee 410 1.45% $5.95 Total $54.67 ans 5 FUTA taxes (limit is $7000) Employee Earning sub to tax E Tax rate T Tax amt T*E Dali $0 0.60% $0.00 Trey 0 0.60% $0.00 Kiesha 0 0.60% $0.00 Chee 410 0.60% $2.46 Total $2.46 ans 6 SUTA Employee Earning sub to tax E Tax rate T Tax amt T*E Dali $0 2.15% $0.00 Trey 0 2.15% $0.00 Kiesha 0 2.15% $0.00 Chee 410 2.15% $8.82 Total $8.82 ans 7 Employee net pay Dali Trey Kiesha Chee Total Gross pay $2,100 800 460 410 $3,770 FICA-SS $62.00 $49.60 $28.52 $25.42 $165.54 FICA-Ned $30.45 $11.60 $6.67 $5.95 $54.67 FUTA 0 0 0 0 0 SUTA 0 0 0 0 0 Health Insurance $31 $31 $31 $31 $124 Net pay $1,976.55 $707.80 $393.81 $347.64 $3,425.80 ans 8 Employer net pay Dali Trey Kiesha Chee Total Gross pay G $2,100 800 460 410 $3,770 FICA-SS $62.00 $49.60 $28.52 $25.42 $165.54 FICA-Ned $30.45 $11.60 $6.67 $5.95 $54.67 FUTA 0 0 0 2.46 $2.46 SUTA 0 0 0 8.82 $8.82 Health Insurance $31 $31 $31 $31 $124 Pension 8%*G $168 $64 $37 $33 $302 Net pay $2,391.45 $956.20 $562.99 $516.45 $4,427.09
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.