Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 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 5.4%. 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 Name Gross Pay through Aug. 18 Gross Pay Income Tax Withholding Dali $ 127,300 $ 2,000 $ 284 Trey 127,500 900 145 Kiesha 6,900 450 39 Chee 1,250 400 30 In addition to gross pay, the company must pay two-thirds of the $60 per employee weekly health insurance; each employee pays the remaining one-third. 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.):
Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 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 5.4%. 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 Name Gross Pay through Aug. 18 Gross Pay Income Tax Withholding Dali $ 127,300 $ 2,000 $ 284 Trey 127,500 900 145 Kiesha 6,900 450 39 Chee 1,250 400 30 In addition to gross pay, the company must pay two-thirds of the $60 per employee weekly health insurance; each employee pays the remaining one-third. 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.):
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 3MC
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Question
Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 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 5.4%. 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 | ||||||||||||||
| Name | Gross Pay through Aug. 18 |
Gross Pay | Income Tax Withholding | |||||||||||
| Dali | $ | 127,300 | $ | 2,000 | $ | 284 | ||||||||
| Trey | 127,500 | 900 | 145 | |||||||||||
| Kiesha | 6,900 | 450 | 39 | |||||||||||
| Chee | 1,250 | 400 | 30 | |||||||||||
In addition to gross pay, the company must pay two-thirds of the $60 per employee weekly health insurance; each employee pays the remaining one-third. 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.):
Transcribed Image Text:5) Employer's FUTA Taxes
Employee
Earnings
Subject to
Tax Rate
Tax Amount
Tax
Tax Rate
Dali
Trey
Kiesha
Chee
Total
0.00
6) Employer's SUTA Taxes
Earnings
Subject to
Tax
Employee
Tax Rate
Tax Amount
Tax Rate
Dali
Trey
Kiesha
Chee
Total
0.00
7) Each Employee's Net (take-home) Pay
Employee
Dali
Trey
Kiesha
Chee
Total
Gross Pay
2,000.00
900.00
450.00
400.00
3,750.00
Income tax withholding
284.00
145.00
39.00
30.00
498.00
FICA - Social Security
0.00
FICA Medicare
0.00
Health Insurance
0.00
Net Pay
0.00
8) Employer's total payroll-related expense for each employee.
Employee
Dali
Trey
Kiesha
Chee
Total
Gross Pay
2,000.00
900.00
450.00
400.00
3,750.00
FICA Social Security
0.00
0.00
0.00
0.00
0.00
FICA Medicare
0.00
0.00
0.00
0.00
0.00
FUTA
0.00
0.00
0.00
0.00
0.00
SUTA
0.00
0.00
0.00
0.00
0.00
Health Insurance
0.00
Pension
0.00
Total Payroll Expense
2,000.00
900.00
450.00
400.00
3,750.00
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