Question: Please explain HOW you got your answer. Thank you Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $118,500 paid

Please explain HOW you got your answer. Thank you

Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $118,500 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the companys FUTA taxes are 0.6% and SUTA taxes are 2.15%. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the companys four employees.

Current Week
Name Gross Pay through Aug. 18 Gross Pay Income Tax Withholding
Dali $ 118,000 $ 2,600 $ 369
Trey 115,950 2,550 411
Kiesha 7,700 510 44
Chee 1,650 460 35

In addition to gross pay, the company must pay one-half of the $72 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employees gross pay (at no cost to employees) to a pension fund.

Required:

Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal places.):

Please explain HOW you got your answer. Thank you Paloma Co. has

four employees. FICA Social Security taxes are 6.2% of the first $118,500

paid to each employee, and FICA Medicare taxes are 1.45% of gross

pay. Also, for the first $7,000 paid to each employee, the companys

1) Employees' FICA Withholdings for Social Security Earnings Subject to Tax Tax Amount Employee Tax Rate Dali 161.20 $ 2,600.00 6.20% Trey 2,550.00 6.20% 158.10 Kiesha 510.00 6.20% 31.62 Chee 6.20% 460.00 28.52 379.44 Total 2) Employees' FICA Withholdings for Medicare Earnings Subject to Tax Employee Tax Amount Tax Rate Dali Trey Kiesha Chee Total $ 0.00 3) Employer's FICA Taxes for Social Security Earnings Subject to Tax Employee Tax Rate Tax Amount Dali Trey Kiesha Chee Total $ 0.00 4) Employer's FICA Taxes for Medicare Earnings Subject to Tax Employee Tax Rate Tax Amount Dali Trey Kiesha Chee Total $ 0.00 5) Employer's FUTA Taxes Earnings Subject to Tax Employee Tax Amount Tax Rate Dali Trey Kiesha Chee 0.00 Total 6) Employer's SUTA Taxes Earnings Subject to Tax Employee Tax Rate Tax Amount Dali Trey Kiesha Chee Total 0.00 7) Each Employee's Net (take-home) Pay Employee Gross Pay Income tax withholding FICA-Social Security FICA -Medicare Trey Dali Kiesha Chee Total 2,600.00 2,550.00 510.00 $ 460.00 6,1 20.00 35.00 369.00 411.00 44.00 859.00 161.20 28.52 158.10 31.62 379.44 0.00 Health Insurance 0.00 Net Pay 0.00 8) Total Payroll Related Expense for Each Employee Employee Gross Pay FICA-Social Security FICA -Medicare Trey Dali Kiesha Chee Total 2,600.00 2,550.00 $ 510.00 $ 460.00 6,120.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 FUTA 0.00 0.00 0.00 0.00 0.00 0.00 SUTA 0.00 0.00 0.00 0.00 Health Insurance 0.00 Pension 0.00 Total Payroll Expense 2,550.00 510.00 $ 2,600.00 $ 460.00 $ 6,120.00

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