The Question is "Legal Stars has four employees. FICA Social Security taxes are 6.20% of the first $106,800 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, its FUTA taxes are 0.80% and SUTA taxes are 2.15% of the first $7,000 paid to each employee. 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."
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 employees FICA withholdings for Medicare.
3. Employers FICA taxes for Social Security.
4. Employers FICA taxes for FUTA taxes.
5. Employer’s SUTA taxes.
6. Each employee’s net (take- home) pay.
7. Employer’s total payroll-related expense for each employee.