Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 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. Name Dali Trey Kiesha Chee Gross Pay through August 18 $ 123,700 135,300 9,500 3,450 Current Week Gross Pay $ 5,200 2,400 1,800 1,800 Employee Tax Rate Dali Trey Kiesha Chee In addition to gross pay, the company must pay one-half of the $108 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. Note: Round your intermediate calculations and final answers to 2 decimal places. 1) Employees' FICA Withholdings for Social Security Earnings Subject to Tax Income Tax Withholding $ 625 266 60 48 Tax Rate Total Tax Amount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question

Accounting

Mc
1
Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 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.
Name
Dali
Trey
Kiesha
Chee
Gross Pay through
August 18
$ 123,700
135,300
9,500
3,450
Employee
Tax Rate
Dali
Trey
Kiesha
Chee
Current Week
Gross Pay:
$ 5,200
2,400
1,800
1,800
In addition to gross pay, the company must pay one-half of the $108 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
Note: Round your intermediate calculations and final answers to 2 decimal places.
1) Employees' FICA Withholdings for Social Security
Earnings
Subject to Tax
Income Tax
Withholding
5.625
266
60
48
Tax Rate
Total
Tax Amount
Transcribed Image Text:Mc 1 Paloma Company has four employees. FICA Social Security taxes are 6.2% of the first $137,700 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. Name Dali Trey Kiesha Chee Gross Pay through August 18 $ 123,700 135,300 9,500 3,450 Employee Tax Rate Dali Trey Kiesha Chee Current Week Gross Pay: $ 5,200 2,400 1,800 1,800 In addition to gross pay, the company must pay one-half of the $108 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 Note: Round your intermediate calculations and final answers to 2 decimal places. 1) Employees' FICA Withholdings for Social Security Earnings Subject to Tax Income Tax Withholding 5.625 266 60 48 Tax Rate Total Tax Amount
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