| Legal Stars pays its employees each week. Its employees’ gross pay is subject to these taxes. |
| Tax | Rate | Applied To | |
| FICA—Social security | 6.20 | % | First $106,800 |
| FICA—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: Don't use plagiarized sources. Get Your Custom Essay on
accounting problem 321695
Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page
|
| 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 $32 per employee weekly health insurance; each employee pays the remaining one half. The company also contributes an extra 8% of each employee’s gross pay (at no cost to employees) to a pension fund. |
| Required: |
|
Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal places. Leave no cells blank be certain to enter “0” wherever required. Omit the “$” sign in your response.) |
| Dale | Ted | Kate | Chas | |
| 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 (take home) pay. | ||||
| 8. Employer’s total payroll related expense for each employee. |
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
