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Problem 9-4A Pardee Co. pays its employees each w...

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Problem 9-4A 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. Name Gross Pay through 8/18 Current Week Gross Pay Current Week 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 (round amounts to the nearest cent): 1. Each employee?s FICA withholdings for Social Security. 2. Each employee?s FICA withholdings for Medicare. 3. Employer?s FICA taxes for Social Security. 4. Employer?s FICA taxes for Medicare. 5. Employer?s FUTA taxes. 6. Employer?s SUTA taxes. 7. Each employee?s net (take-home) pay. 8. Employer?s total payroll-related expense for each employee.

 

Paper#3171 | Written in 18-Jul-2015

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