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Templin Company pays its employees each week




Question;Templin Company pays its employees each week. Its employees? gross pay is subject to these taxes:Tax Rate Applied ToFICA ? Social Security 6.20% First $94,200FICA ? Medicare 1.45% All gross payFUTA 0.80% First $7,000SUTA 2.15% First $7,000The company is preparing its payroll calculations for the week ended August 12. Payroll records show the following information for the company?s four employees:This WeekName Gross Pay - YTD Gross Pay Income Tax WithholdingJasper $56,400 $2,500 $1,040Matilda 93,400 1,750 350Homer 16,020 600 100Gertrude 6,070 1,200 220In addition to gross pay, the company must pay one-half of the $20 per employee weekly health insurance, each employee pays the remaining one-half. The company also contributes an extra 6% of each employee?s gross pay (at no cost to employees) to a pension fund.RequiredCompute the following for the week ended August 12 (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#41054 | Written in 18-Jul-2015

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