Question

Please help with box 8) "pension"

Paloma Co. Stars has four employees. FICA Social Security taxesare 6.2% of the first $117,000 paid to each employee, and FICAMedicare taxes are 1.45% of gross pay. Also, for the first $7,000paid to each employee, the company’s FUTA taxes are .6% and SUTAtaxes are 6.20%. The company is preparing its payroll calculationsfor the week ended August 25. Payroll records show the followinginformation for the company’s four employees.

					Current Week
Name	Gross Pay through Aug. 18				Gross Pay				Income Tax Withholding
Dahlia		$	115,600			$	2,600			$	369
Trey			116,250				750				121
Kiesha			8,300				570				49
Chee			2,250				520				39

In addition to gross pay, the company must pay one-half of the$84 per employee weekly health insurance; each employee pays theremaining one-half. The company also contributes an extra 8% ofeach employee’s gross pay (at no cost to employees) to a pensionfund.

Required:

Compute the following for the week ended August 25.(Round your intermediate calculations and final answers to2 decimal places.):

1) Employees' FICAWithholdings for Social Security
Employee	Earnings Subject to Tax	Tax Rate	Tax Amount
Dahlia	$1,400.00	6.20%	86.80
Trey	750.00	6.20%	46.50
Kiesha	570.00	6.20%	35.34
Chee	520.00	6.20%	32.24
		Total	$200.88
2) Employees' FICAWithholdings for Medicare
Employee	Earnings Subject to Tax	Tax Rate	Tax Amount
Dahlia	$2,600.00	1.45%	$37.70
Trey	750.00	1.45%	10.88
Kiesha	570.00	1.45%	8.27
Chee	520.00	1.45%	7.54
		Total	$64.39
3) Employer's FICA Taxes forSocial Security
Employee	Earnings Subject to Tax	Tax Rate	Tax Amount
Dahlia	$1,400.00	6.20%	$86.80
Trey	750.00	6.20%	46.50
Kiesha	570.00	6.20%	35.34
Chee	520.00	6.20%	32.24
		Total	$200.88
4) Employer's FICA Taxes forMedicare
Employee	Earnings Subject to Tax	Tax Rate	Tax Amount
Dahlia	$2,600.00	1.45%	$37.70
Trey	750.00	1.45%	10.88
Kiesha	570.00	1.45%	8.27
Chee	520.00	1.45%	7.54
		Total	$64.39
5) Employer's FUTA Taxes
Employee	Earnings Subject to Tax	Tax Rate	Tax Amount
Dahlia		0.60%
Trey		0.60%
Kiesha		0.60%
Chee	520.00	0.60%	$3.12
		Total	$3.12
6) Employer's SUTA Taxes
Employee	Earnings Subject to Tax	Tax Rate	Tax Amount
Dahlia		6.20%
Trey		6.20%
Kiesha		6.20%
Chee	520.00	6.20%	$32.24
		Total	$32.24
7) Each Employee's Net(take-home) Pay
Employee	Dahlia	Trey	Kiesha	Chee	Total
Gross Pay	$2,600.00	$750.00	$570.00	$520.00	$4,440.00
Income tax withholding	369.00	121.00	49.00	39.00	578.00
FICA - Social Security	86.80	46.50	35.34	32.24	200.88
FICA - Medicare	37.70	10.88	8.27	7.54	64.39
Health Insurance	42.00	42.00	42.00	42.00	168.00
Net Pay	$2,064.50	$529.62	$435.39	$399.22	$3,428.73
8) Total Payroll RelatedExpense for Each Employee
Employee	Dahlia	Trey	Kiesha	Chee	Total
Gross Pay	$2,600.00	$750.00	$570.00	$520.00	$4,440.00
FICA - Social Security	86.80	46.50	35.34	32.24	200.88
FICA - Medicare	37.70	10.88	8.27	7.54	64.39
FUTA	0.00	0.00	0.00	3.12	3.12
SUTA	0.00	0.00	0.00	32.24	32.24
Health Insurance	42.00	42.00	42.00	42.00	168.00
Pension					0.00
Total Payroll Expense	$2,766.50	$849.38	$655.61	$637.14	$4,908.63