Problem - Pardee Co. pays its employees each week. Its employees' gross pay is subject to these taxes.
|
Tax
|
Rate
|
Applied To
|
|
FICA-Social Security
|
6.20%
|
First $102,000
|
|
FICA-Medicare
|
1.45
|
All gross pay
|
|
FUTA
|
0.80
|
First $7,000
|
|
SUTA
|
2.15
|
First $7,000
|
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:
|
|
Current Week
|
|
Name
|
Gross Pay through 8/18
|
Gross Pay
|
Income Tax Withholding
|
|
Dahlia
|
$100,500
|
$3,600
|
$450
|
|
Trey
|
31,850
|
1,275
|
140
|
|
Kiesha
|
6,260
|
1,440
|
173
|
|
Chee
|
1,000
|
400
|
36
|
In addition to gross pay, the company must pay one-half of the $22 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.
Employee's FICA withholdings for Social Security
Employee's FICA withholdings for Medicare
Employer's FICA taxes for Social Security
Employer's FICA taxes for Medicare
Employer's FUTA taxes
Employer's SUTA taxes
Employee's net (take-home) pay
Employer's total payroll-related expense for each employee