Question

Please also show how to get figure for earnings subject to tax

Problem 11-3A Payroll expenses, withholdings, and toxes LO P2, P3 Paloma Co. has four employees, FICA Social Security taxes are 6.2% of the first $118,500 paid to each employee, and RCA Medicare taxes are 1 45% of gross pay Also, for the first $7000 paid to each employee, the company's FUTA taxes are 06% and SUTA taxes are 215%. 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 0.45 Week Incone Tax Gross Pay Aug. 1 Gross Pay Withholding Dali Trey Kiesha Chee $117,700 117,900 7,400 1,35e $2,300 327 97 430 32 In addition to gross pay, the company must pay one-half of the $66 per employee weekly health insurance: each employee pays the Remences 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 Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal places.) FICA Withholdings for Social Security Earnings Subject to Tax ak Kate Tax Amount Dali Trey Kiesha Chee Total 0.00 FICA gs for Earnings Tax Rate Tax Amount Subject to Tax

Answer 1

Answer

Workings Dali Trey Kiesha Chee $ 118,500118,500 118,500$118,500 1,350 Maximum base Earned through 8/18 Amount subject to tax Earned this week Subject to tax Tax rate Social Security tax $117,700 $ 800 117,900 S 600 111,100 117,150 600 $ 800 6.20% S49.60 S 480 S 430 6.20% 6.20 $37.20 $29.76 $ 26.66 $143.22 2) Dali re Kiesha โต้ Earned this week Tax rate 2,300 1.45% $ 480 1.45% $ 430 1.45% 8.70 1.45% $ 6.24 $55.25 Medicare tax 3) Dali Trey Kiesha S 800.00600.00480.00430.00 6.20% Subject to ta Tax rate Employer's FICA taxes for social security 6.20% 49.60 S 37.20 S 29.76 $ 26.66 $143.22 4) Dali Trey Kiesha Earnings subject to tax Tax rate Employer's FICA taxes for medicare $2,300.00600.00 480.00 1.45% 1.45% S 8.70 430.00 1.45% S 6.24 ให้ $55.25 5) Dali Trey $ 7,000.007,000.00 $7,000.007,000.00 Maximum base Earned through 8/18 Amount subject to tax Earned this week Subject to tax 117,700$117,900 $7,400 $ 0.00 5,650.00 S 2,300.0060.00480.00 430.00 $ 0.00430.00 0.60% $ 0.00 0.00 Tax rate FUTA tax 0.60% 2.58 $2.58 6) Dali re 0.00 2.15% 0.00430.00 2.15% $ 9.25 Subject to tax Tax rate SUTA Tax 2.15% 2.15% $ 9.25

1) Employee's FICA withholding for Social Secuirty Earnings subject to tax Tax rate Tax amoun Dahlia $ .00| 800 $600.00| $480.00| 430.001 6.20% 6.20% 6.20%) 6.20% $49.60 $37.20 $29.76 $26.66 143.22 Kiesha | Total 2) Employee's FICA withholding for Medicare Earnings subject to tax Tax rate Tax amount $2.300.001 1.45% s33.35 6.96 55.25 $600.00| $480.00| $ 430.00| 1.45% 1.45% 1.45% Kiesha Chee Total 3) Employer's FICA taxes for Social Secuirty Earnings subject to tax Tax rate Tax amount $800.00| 6.20%) $49.60 $600.001 6.20% $37.20 $480.ool 6.20%) $29.76 $430.00| 6.20%) $26.66 143.22 Kiesha Chee Total 4) Employer's FICA taxes for Medicare Employee Dahlia Trey Kiesha Chee Earnings subject to tax Tax rate Tax amount 1.45%) $33.35 $2,300.00 $ 00| 1.45% 600 $480.001 $430.001 1.45% 1.45%) $6.24 55.25 Total 5) Employer's FUTA taxes Earnings subject to tax Tax rate Tax amount 0.00 ) $0.00 0.00 $2.58 Dahlia $0.001 $0.001 $0.001 $430.ool 0.50% 0.50% 0.50% 0.60%) Kiesha Total 6) Employer's SUTA taxes Employee Dahlia Earnings subject to tax Tax rate $0.00 $0.00| $0.001 Tax amount 0.00 ) $0.00 2.15% 2.15% 2.15% 430.00 9.25 Total Each Employee's Net (take-home pay) Employee Gross Income tax withholdi FICA- Social security FICA- Medicare Health insurance (1/2) Dali Kiesha Chee Total 480 $430 $3,810 327.0097.0042.00 $32.00 $498.00 $2,300$600 ng 49.6037.20 $29.76$26.66 $14 33.35$8.70 6.96 $6.2455.25 33.00 $33.00 $132.00 33.00 $1,857.05$424.10$368.28 $332.11 52,981.54 8) Total payroll related expense for each employee Employee Gross FICA- Social secur FICA- Medicare FUTA SUTA Health insurance (1/2) Pension @8% of Gross Pay Total payroll expense Dali Kiesha Chee Total 2,300.00 600.00480.00 $430.00 3,810.00 49.6037.2029.7626.66 $143.22 $6.96 $6.2455.25 0.00 $2.582.58 0.00$9.25$9.2 33.0033.0033.00 $33.00 $132.00 1840048.00$38.40 $34.40 $ 304.80 $2,599.95726.90588.12 542.12 $4,457.09 33.358.70 0.00 0.00