Paloma Co. Stars has four employees. FICA Social Security taxes are 6.2% of the first $117,000 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 .6% and SUTA taxes are 6.20%. 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

  Dahlia

 

$

116,150

 

 

$

3,150

 

 

$

447

 

  Trey

 

 

116,800

 

 

 

200

 

 

 

32

 

  Kiesha

 

 

9,400

 

 

 

680

 

 

 

59

 

  Chee

 

 

3,350

 

 

 

630

 

 

 

47

 


  

In addition to gross pay, the company must pay one-half of the $106 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.):

 

 

 

    • 10 years ago
    Payroll Taxes
    NOT RATED

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