Required Be sure to include a description for each journal e

Required: Be sure to include a description for each journal entry Required: Be sure to show all work for your calculations. Use the Excel template provided to complete your assignment Question# 2-Payroll register: Paloma Co. 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 06% 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: In addition to gross pay, the company must pay one-half of the 596 per employee for Current Week Gross Pay rough Aug 1 $115,900 116,550 Income Tax Dahlia 5412 32 900 450 Trey 72 Kiesha 8,900 Chee 2,850 y health insurance. Each employee pays the remaining one-half of the weekly weekl health insurance. The company also contributes an extra 8% of each employee\'s gross pay at no cost to employees) to a pension fund. Required: 1. Prepare the Payroll Register below for the week ended August 25 to show each Part employee\'s net (take home) pay. Round your calculations and final answers to 2 decimal places,

Solution

WORKING NOTES:

1. Calculation of withholding for social security tax for each employee

FICA withholding for Social Security Tax

Dahila

Trey

Kiesha

Chee

Total

Maximum Base (A)

117000

117000

117000

117000

Earned through Aug.18 (B)

115900

116550

8900

2850

Yet under maximum (A-B)

1100

450

108100

114150

Gross Pay earned this week

2900

450

630

580

Subject to Tax

1100

450

630

580

Tax Rate

6.20%

6.20%

6.20%

6.20%

Social Security Tax

68.20

27.90

39.06

35.96

171.12

2. Calculation of withholding for Medicare tax for each employee

FICA withholding for Medicare Taxes

Dahila

Trey

Kiesha

Chee

Total

Gross Pay of Current Week

2900

450

630

580

Tax Rate

1.45%

1.45%

1.45%

1.45%

Medicare Tax

42.05

6.53

9.14

8.41

66.12

Answer- Part 1:

Each Employee\'s Net (take-home) Pay

Dahila

Trey

Kiesha

Chee

Total

Gross Earnings (this week)

2900

450

630

580

4560

Less: Withholding by Employer

      - Income Tax

412

72

55

44

583

      - FICA Social Security

68.2

27.9

39.06

35.96

171.12

      - FICA Medicare

42.05

6.53

9.14

8.41

66.13

      - Health Insurance

48

48

48

48

192

Net Pay

2329.75

295.57

478.8

443.63

3547.75

Answer- Part 2 & 3:

Employer\'s FUTA and SUTA Taxes for Chee

FUTA

SUTA

Maximum Base (A)

7000

7000

Earned through Aug, 18

2850

2850

Amount Subject to tax (A-B)

4150.00

4150.00

Earned this week

580

580

Subject to tax

580

580

Tax Rate

0.60%

6.20%

Tax Amount

3.48

35.96

FICA withholding for Social Security Tax
	Dahila	Trey	Kiesha	Chee	Total
Maximum Base (A)	117000	117000	117000	117000
Earned through Aug.18 (B)	115900	116550	8900	2850
Yet under maximum (A-B)	1100	450	108100	114150
Gross Pay earned this week	2900	450	630	580
Subject to Tax	1100	450	630	580
Tax Rate	6.20%	6.20%	6.20%	6.20%
Social Security Tax	68.20	27.90	39.06	35.96	171.12