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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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.
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| Current Week | ||||||||||||
| Â | Â | |||||||||||
| Name | Gross Pay through 8/18 |
Gross Pay | Income Tax Withholding | |||||||||
| Dahlia | Â | $ | 108,500 | Â | Â | $ | 2,500 | Â | Â | $ | 289 | Â |
| Trey | Â | Â | 36,900 | Â | Â | Â | 950 | Â | Â | Â | 150 | Â |
| Kiesha | Â | Â | 7,350 | Â | Â | Â | 500 | Â | Â | Â | 44 | Â |
| Chee | Â | Â | 1,300 | Â | Â | Â | 450 | Â | Â | Â | 35 | Â |
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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.
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1) Employees FICA withholdings for social security
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Employee Earnings Subject to tax Tax Rate Tax Amount
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Dahlia 6.20%
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Trey
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Kiesha
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Chee
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