Paloma Co. Stars has four employees. FICA Social Security taxes are 6.2% of the first $110,100 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%u2019s four employees.
| Current Week |
|
|
|
| Name |
Gross Pay
through 8/18 |
Gross Pay |
Income Tax Withholding |
| Dahlia |
|
$ |
108,500 |
|
|
$ |
2,500 |
|
|
$ |
289 |
|
| Trey |
|
|
36,900 |
|
|
|
950 |
|
|
|
150 |
|
| Kiesha |
|
|
7,350 |
|
|
|
500 |
|
|
|
44 |
|
| Chee |
|
|
1,300 |
|
|
|
450 |
|
|
|
35 |
|
In addition to gross pay, the company must pay one-half of the $70 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 7% of each employee%u2019s gross pay (at no cost to employees) to a pension fund.
1) Employees FICA withholdings for social security
Employee Earnings Subject to tax Tax Rate Tax Amount
Dahlia 6.20%
Trey
Kiesha
Chee