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:
Current Week
Name Gross Pay
through 8/18 Gross Pay Income Tax Withholding
Dale $ 105,300 $ 4,500 $ 563
Ted 36,855 1,474 162
Kate 6,740 560 67
Chas 1,078 431 39
In addition to gross pay, the company must pay one-half of the $22 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employee’s gross pay (at no cost to employees) to a pension fund.
Required:
Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal places. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” 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.
