Legal Stars pays its employees each week. Its employees’ gross pay is subject to these taxes.
Tax Rate Applied To
FICAâ€”Social security 6.20 % First $106,800
FICAâ€”Medicare 1.45 All gross pay
FUTA 0.80 First $7,000
SUTA 2.15 First $7,000
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:
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 (at no cost to employees) to a pension fund.
Compute the following for the week ended August 25.
Dale Ted Kate Chas
1. Each employee’s FICA withholdings for Social Security. $ $ $ $
2. Each employee’s FICA withholdings for Medicare.
3. Employerâ€™s FICA taxes for Social Security.
4. Employerâ€™s FICA taxes for Medicare.
5. Employerâ€™s FUTA taxes.
6. Employerâ€™s SUTA taxes.
7. Employeeâ€™s net (take-home) pay.
8. Employerâ€™s total payroll-related expense for each employee.