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. Current Week ces Name Gross Pay through August 18 $ 124,100 Dali Trey Kiesha Chee 133,900 9,100 3,050 Gross Pay Income Tax Withholding $ 4,800 $ 568 3,800 298 1,000 56 1,000 45 In addition to gross pay, the company must pay one-half of the $100 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 Employee Tax Rate Dali Trey Kiesha Chee Earnings Subject to Tax Tax Rate Tax Amount 2) Employees' FICA Withholdings for Medicare Employee Tax Rate Dali Trey Kiesha Total $ 0.00 Earnings Subject to Tax Tax Rate Tax Amount Prey 6 of 6 Next >
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. Current Week ces Name Gross Pay through August 18 $ 124,100 Dali Trey Kiesha Chee 133,900 9,100 3,050 Gross Pay Income Tax Withholding $ 4,800 $ 568 3,800 298 1,000 56 1,000 45 In addition to gross pay, the company must pay one-half of the $100 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 Employee Tax Rate Dali Trey Kiesha Chee Earnings Subject to Tax Tax Rate Tax Amount 2) Employees' FICA Withholdings for Medicare Employee Tax Rate Dali Trey Kiesha Total $ 0.00 Earnings Subject to Tax Tax Rate Tax Amount Prey 6 of 6 Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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.
Current Week
ces
Name
Gross Pay through
August 18
$ 124,100
Dali
Trey
Kiesha
Chee
133,900
9,100
3,050
Gross Pay
Income Tax
Withholding
$ 4,800
$ 568
3,800
298
1,000
56
1,000
45
In addition to gross pay, the company must pay one-half of the $100 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
Employee
Tax Rate
Dali
Trey
Kiesha
Chee
Earnings
Subject to Tax
Tax Rate
Tax Amount
2) Employees' FICA Withholdings for Medicare
Employee
Tax Rate
Dali
Trey
Kiesha
Total $
0.00
Earnings
Subject to Tax
Tax Rate
Tax Amount
Prey
6 of 6
Next >
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