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.

In addition to gross pay, the company must pay one-half of the $32 per employee weekly health insurance; eac0h employee pays the 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.

Required
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 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. Each employee’s net (take-home) pay.
8. Employer’s total payroll-related expense for eachemployee.

Transcribed Image Text:

Gross Pay through 8/18 Current Week Name Dale Ted Kate Chas Gross Pay Income Tax Withholding $252 $2,000 900 450 400 $105,300 36,650 6,750 1,050 54 36