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Legal Stars has four employees. FICA Social Security taxes are 6.2% of the first $106,800 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, its FUTA taxes are 0.8% 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. Current Week - Name Gross Pay through 8/18 Gross Pay Income Tax Withholding Dale $ 105,300 $ 2,000 $ 252 Ted 36,650 900 99 Kate 6,750 450 54 Chas 1,050 400 36 -

In 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 to a pension fund. Required: Compute the following for the week ended August 25. 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. Employee's net pay. 8. Employer's total payroll-related expense for each employee.

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  • Category:- Accounting Basics
  • Reference No.:- M9944175

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