accounting problem 321695
Aug 29, 2021 | Uncategorized
| Legal Stars pays its employees each week. Its employees’ gross pay is subject to these taxes. |
| Tax |
Rate |
Applied To |
| FICA—Social security |
6.20 |
% |
First $106,800 |
| 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 |
| Dale |
|
$ |
105,300 |
|
|
$ |
2,000 |
|
|
$ |
252 |
|
| Ted |
|
|
36,650 |
|
|
|
900 |
|
|
|
99 |
|
| Kate |
|
|
6,750 |
|
|
|
450 |
|
|
|
54 |
|
| Chas |
|
|
1,050 |
|
|
|
400 |
|
|
|
36 |
|
|
|
In addition to gross pay, the company must pay one half of the $32 per employee weekly health insurance; each employee pays the remaining one half. The company also contributes an extra 8% of each employee’s gross pay (at no cost to employees) to a pension fund.
|
| Required: |
|
Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal places. Leave no cells blank be certain to enter “0” wherever required. Omit the “$” sign in your response.)
|
|
Dale |
Ted |
Kate |
Chas |
| 1. Each employee’s FICA withholdings for Social Security. |
$ |
$ |
$ |
$ |
| 2. Each employee’s FICA withholdings for Medicare. |
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| 3. Employer’s FICA taxes for Social Security. |
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| 4. Employer’s FICA taxes for Medicare. |
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| 5. Employer’s FUTA taxes. |
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| 6. Employer’s SUTA taxes. |
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| 7. Employee’s net (take home) pay. |
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| 8. Employer’s total payroll related expense for each employee. |
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