Paloma Co. Stars has four employees. FICA Social Security taxes are 6.2% of the first $110,100 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, its FUTA taxes are 0.8% and SUTA taxes are 2.15% of the first $7,000 paid to each employee. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the company%u2019s four employees.
| Current Week | ||||||||||||
|
|
||||||||||||
| Name | Gross Pay through 8/18 |
Gross Pay | Income Tax Withholding | |||||||||
| Dahlia | $ | 108,500 | $ | 2,500 | $ | 289 | ||||||
| Trey | 36,900 | 950 | 150 | |||||||||
| Kiesha | 7,350 | 500 | 44 | |||||||||
| Chee | 1,300 | 450 | 35 | |||||||||
In addition to gross pay, the company must pay one half of the $70 per employee weekly health insurance; each employee pays the remaining one half. The company also contributes an extra 7% of each employee%u2019s gross pay (at no cost to employees) to a pension fund.
1) Employees FICA withholdings for social security
Employee Earnings Subject to tax Tax Rate Tax Amount
Dahlia 6.20%
Trey
Kiesha
Chee