ronaldosaba140

ronaldosaba140

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ronaldo saba

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Algebra1Accounting3Physics2Economics2Chemistry5
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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
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