Question

DUIBUS, WIthholdings, and taxes LO P2, P3 Paloma Co. has our employees. FiCA Social Security tages are 62% of the first Sm8500 paid to earn employee, and RCA Medicare ages aie .45% of goss pay. Asofor the irst 57000 paid to each employee, the company's RTA tasrs are 06% ad SUTA tases are 215%. The company is preparing its payroll calculations for the week ended August 25 Pryoll records show the fol weg ito at n for the company's four employees Current Wek Gross Pay through Aug. 15 Gross Pay Withholding 54,400 1,650 625 $136, 2808 ,458 the $108 per employee weekly heaith insurance: each employee pays the In addition to gross pay, the comp remaining one-hat. The company also contributes an extra 8% of each employee's gross pay(at no cost to fund Compute the following for the week ended August 25, (Round your intermadliase ceiculetions and final anewers to 2 decimal places.) Required 1) Employees FICA Withholdings for Social Security C Prey 4of 5l Next>

Answer 1

FICA social security tax-6.2% of the first $118,500 Tax Amount Gross Pay unSalary for the weekCurrent week earnings Tax Rate August 18 ended August 25 subject to tax [Earnings subject to tax x 6.2%) $2,300 [$118,500 - S1 16,200] [Refer note below] Dall $116,200 $4,400 6.2% 142,60 Trey S116,850 $1,650 S1,650 6.2% $102.30 Kiesha $9,500 $690 $690 6.2% $42.78 Chee $3,450 S648 $648 6.2% S40.18 Total Social Security Tax $327.86 Note Dall has already paid the Social security tax on S116,200 (earnings until August 18). Even though his earnings during the week ended August 25 is $4,400, he is liable to pay the Social security tax on $2,300 only since social security tax is to be paid on the first $118,500 FICA withholding for Social Security tax- S327.86