Paloma Co has four employees FICA Social Security taxes are

Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $118,500 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 2.15%. 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.

In addition to gross pay, the company must pay one-half of the $80 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.):

1) Employees\' FICA Withholdings for Social SecurityEmployeeEarnings Subject to TaxTax RateTax AmountDaliTreyKieshaCheeTotal$0.002) Employees\' FICA Withholdings for MedicareEmployeeEarnings Subject to TaxTax RateTax AmountDaliTreyKieshaCheeTotal$0.003) Employer\'s FICA Taxes for Social SecurityEmployeeEarnings Subject to TaxTax RateTax AmountDaliTreyKieshaCheeTotal$0.004) Employer\'s FICA Taxes for MedicareEmployeeEarnings Subject to TaxTax RateTax AmountDaliTreyKieshaCheeTotal$0.005) Employer\'s FUTA TaxesEmployeeEarnings Subject to TaxTax RateTax AmountDaliTreyKieshaCheeTotal$0.006) Employer\'s SUTA TaxesEmployeeEarnings Subject to TaxTax RateTax AmountDaliTreyKieshaCheeTotal$0.007) Each Employee\'s Net (take-home) PayEmployeeDaliTreyKieshaCheeTotalGross Pay$3,000.00$2,350.00$550.00$500.00$6,400.00Income tax withholding426.00379.0048.0038.00891.00FICA - Social Security0.00FICA - Medicare0.00Health Insurance0.00Net Pay$0.008) Total Payroll Related Expense for Each EmployeeEmployeeDaliTreyKieshaCheeTotalGross Pay$3,000.00$2,350.00$550.00$500.00$6,400.00FICA - Social Security0.000.000.000.000.00FICA - Medicare0.000.000.000.000.00FUTA0.000.000.000.000.00SUTA0.000.000.000.000.00Health Insurance0.00Pension0.00Total Payroll Expense$3,000.00$2,350.00$550.00$500.00$6,400.00

			Current Week
Name	Gross Pay through Aug. 18		Gross Pay		Income Tax Withholding
Dali		$	115,600				$	3,000				$	426
Trey			116,150					2,350					379
Kiesha			8,100					550					48
Chee			2,050					500					38

Solution

1.Employee FICA withholding for Social Secutiry Employee Employee earnings Tax rate Tax Amount subject to tax Dali 2900.00 6.20% 179.80 Trey 2350.00 6.20% 145.70 Kiesha 550.00 6.20% 34.10 Chee 500.00 6.20% 31.00 Total 6300.00 390.60 Working: Gross Salary upto Aug.25 Gross pay Current Gross pay Earnings Earnings through august 18 week pay upto Aug.25 Limit Subjectto tax Dali 115600 3000 118600 118500 2900 Trey 116150 2350 118500 118500 2350 Kiesha 8100 550 8650 118500 550 Chee 2050 500 2550 118500 500 Since Dali is crossing the earnings limit during the curent week, her earnings subject to tax will be $2,900. 2.Employee FICA withholding for Medicare Employee Employee earnings Tax rate Tax Amount subject to tax Dali 3000.00 1.45% 43.50 Trey 2350.00 1.45% 34.08 Kiesha 550.00 1.45% 7.98 Chee 500.00 1.45% 7.25 Total 6400.00 92.80 3.Employer\'s FICA taxes for for Social Secutiry Employee Employee earnings Tax rate Tax Amount subject to tax Dali 2900.00 6.20% 179.80 Trey 2350.00 6.20% 145.70 Kiesha 550.00 6.20% 34.10 Chee 500.00 6.20% 31.00 Total 6300.00 390.60 4.Employer\'s FICA taxes for Medicare Employee Employee earnings Tax rate Tax Amount subject to tax Dali 3000.00 1.45% 43.50 Trey 2350.00 1.45% 34.08 Kiesha 550.00 1.45% 7.98 Chee 500.00 1.45% 7.25 Total 6400.00 92.80 5.Employer\'s FUTA taxes Employee Employee earnings Tax rate Tax Amount subject to tax Dali 0.00 0.60% 0.00 Trey 0.00 0.60% 0.00 Kiesha 0.00 0.60% 0.00 Chee 500.00 0.60% 3.00 Total 500.00 3.00 6.Employer\'s SUTA taxes Employee Employee earnings Tax rate Tax Amount subject to tax Dali 0.00 2.15% 0.00 Trey 0.00 2.15% 0.00 Kiesha 0.00 2.15% 0.00 Chee 500.00 2.15% 10.75 Total 500.00 10.75 Since the earnings limit for FUTA and SUTAtaxes is $7,000 FUTA and SUTA taxes are payable only on earnings of Chee. 7. Each employes net (Take home) pay Employe Total Gross pay Withholdings Total Withholding Net Pay Income tax FICA Health Social cecurity Medicare Insurance Dali 3000.00 426.00 179.80 43.50 40.00 689.30 2310.70 Trey 2350.00 379.00 145.70 34.08 40.00 598.78 1751.23 Kiesha 550.00 48.00 34.10 7.98 40.00 130.08 419.93 Chee 500.00 38.00 31.00 7.25 40.00 116.25 383.75 Total 6400.00 891.00 390.60 92.80 160.00 1534.40 4865.60 8. Total pay related expenses for each employe Employee Total Gross pay FICA FUTA SUTA Health Pension Total Social Medicare Insurance @8% of Security gross pay Dali 3000.00 179.80 43.50 0.00 0.00 40.00 240.00 503.30 Trey 2350.00 145.70 34.08 0.00 0.00 40.00 188.00 407.78 Kiesha 550.00 34.10 7.98 0.00 0.00 40.00 44.00 126.08 Chee 500.00 31.00 7.25 3.00 10.75 40.00 40.00 132.00 Total 6400.00 390.60 92.80 3.00 10.75 160.00 512.00 1169.15