80.2K

Verified Solution

Question

Accounting

please explain how you got the answers
image
image
image
image
image
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. In addition to gross pay, the company must pay one-half of the $64 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 \begin{tabular}{|c|c|c|c|} \hline Employee & \begin{tabular}{l} Earnings \\ Subject to Tax \end{tabular} & Tax Rate & Tax Amount \\ \hline \multicolumn{4}{|l|}{ Tax Rate } \\ \hline \multicolumn{4}{|l|}{ Dali } \\ \hline \multicolumn{4}{|l|}{ Trey } \\ \hline \multicolumn{4}{|l|}{ Kiesha } \\ \hline \multicolumn{4}{|l|}{ Chee } \\ \hline & & Total & 0.00 \\ \hline \end{tabular} 2) Employees' FICA Withholdings for Medicare 3) Employer's FICA Taxes for Social Security 5) Employer's FUTA Taxes \begin{tabular}{|c|c|c|c|} \hline Employee & \begin{tabular}{c} Earnings \\ Subject to Tax \end{tabular} & Tax Rate & Tax Amount \\ \hline \multicolumn{4}{|l|}{ Tax Rate } \\ \hline \multicolumn{4}{|l|}{ Dali } \\ \hline \multicolumn{4}{|l|}{ Trey } \\ \hline \multicolumn{4}{|l|}{ Kiesha } \\ \hline \multicolumn{4}{|l|}{ Chee } \\ \hline & & Total & 0.00 \\ \hline \end{tabular} 6) Employer's SUTA Taxes 7) Each Employee's Net (take-home) Pay \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline Employee & & Dali & & Trey & & Kiesha & & Chee & & Total \\ \hline Gross Pay & $ & 3,000.00 & $ & 2,800.00 & $ & 1,400.00 & $ & 1,800.00 & $ & 9,000.00 \\ \hline Income tax withholding & & 312.00 & & 113.00 & & 41.00 & & 32.00 & & 498.00 \\ \hline FICA - Social Security & & & & & & & & & & 0.00 \\ \hline FICA - Medicare & & & & & & & & & & 0.00 \\ \hline Health Insurance & & & & & & & & & & 0.00 \\ \hline Net Pay & & & & & & & & & $ & 0.00 \\ \hline \end{tabular} 8) Employer's Total Payroll-Related Expense for Each Employee. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline Employee & & Dali & & Trey & & iesha & & Chee & & Total \\ \hline Gross Pay & $ & 3,000.00 & $ & 2,800.00 & $ & 1,400.00 & $ & 1,800.00 & $ & 9,000.00 \\ \hline FICA - Social Security & & 0.00 & & 0.00 & & 0.00 & & 0.00 & & 0.00 \\ \hline FICA - Medicare & & 0.00 & & 0.00 & & 0.00 & & 0.00 & & 0.00 \\ \hline FUTA & & 0.00 & & 0.00 & & 0.00 & & 0.00 & & 0.00 \\ \hline SUTA & & 0.00 & & 0.00 & & 0.00 & & 0.00 & & 0.00 \\ \hline Health Insurance & & & & & & & & & & 0.00 \\ \hline Pension & & & & & & & & & & 0.00 \\ \hline Total Payroll Expense & $ & 3,000.00 & $ & 2,800.00 & $ & 1,400.00 & s & 1,800.00 & $ & 9,000.00 \\ \hline \end{tabular}

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students