Payroll expenses, withholdings, and taxes P2 P3 Fishing Guides 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 September 30. Payroll records show the following information for the company’s four employees. In addition to gross pay, the company must pay 60% of the $50 per employee weekly health insurance; each employee pays the remaining 40%. The company also contributes an extra 5% of each employee’s gross pay (at no cost to employees) to a pension fund. Required Compute the following for the week ended September 30 (round amounts to the nearest cent): Employer’s FUTA taxes. (5) $2.10 Employer’s SUTA taxes. Each employee’s net (take-home) pay. (7) Total net pay, $4,565.81 Employer’s total payroll-related expense for each employee.
Problem 9-3B Payroll expenses, withholdings, and taxes P2 P3
Fishing Guides 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 September 30. Payroll records show the following information for the company’s four employees.
In addition to gross pay, the company must pay 60% of the $50 per employee weekly health insurance; each employee pays the remaining 40%. The company also contributes an extra 5% of each employee’s gross pay (at no cost to employees) to a pension fund.
Required
Compute the following for the week ended September 30 (round amounts to the nearest cent):
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Employer’s FUTA taxes.
(5) $2.10
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Employer’s SUTA taxes.
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Each employee’s net (take-home) pay.
(7) Total net pay, $4,565.81
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Employer’s total payroll-related expense for each employee.
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