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ACC - Legal Stars pays its employees each week

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Question;Legal Stars pays its employees each week. Its employees' gross pay is subject to these taxes.Tax Rate Applied ToFICA?Social security 6.20 % First $106,800FICA?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 25. Payroll records show the following information for the company's four employees:Current WeekName Gross Paythrough 8/18 Gross Pay Income Tax WithholdingDale $ 105,300 $ 2,000 $ 252Ted 36,650 900 99Kate 6,750 450 54Chas 1,050 400 36In 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.Dale Ted Kate Chas1. 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. Employee?s net (take-home) pay.8. Employer?s total payroll-related expense for each employee.

 

Paper#43167 | Written in 18-Jul-2015

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