Fishing Guides Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 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 company's FUTA taxes are 0.6% and SUTA taxes are 5.4%. The company is preparing its payroll calculations for the week ended September 30. Payroll records show the following information for the company's four employees. A B D Current Week Gross Pay through Sep. 23 $126,800 126,885 1 2 Name Gross Pay Income Tax Withholding Ahmed $2,500 $198 4 Carlos 1,515 182 Jun 6,650 475 32 Marie 23,700 1,000 68 6
Fishing Guides Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 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 company's FUTA taxes are 0.6% and SUTA taxes are 5.4%. The company is preparing its payroll calculations for the week ended September 30. Payroll records show the following information for the company's four employees. A B D Current Week Gross Pay through Sep. 23 $126,800 126,885 1 2 Name Gross Pay Income Tax Withholding Ahmed $2,500 $198 4 Carlos 1,515 182 Jun 6,650 475 32 Marie 23,700 1,000 68 6
Chapter3: Social Security Taxes
Section: Chapter Questions
Problem 14PA: During the third calendar quarter of 20--, Bayview Inn, owned by Diane R. Peters, employed the...
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100%
In addition to gross pay, the company must pay 60% of the $50 per employee weekly health insurance;
each employee pays the remaining 40%. The company also contributes an extra 5% of each employee’s
gross pay (at no cost to employees) to a pension fund.
Required
Compute the following for the week ended September 30 (round amounts to the nearest cent):
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. Each employee’s net (take-home) pay.
8. Employer’s total payroll-related expense for each employee.
Transcribed Image Text:Fishing Guides Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 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 company's FUTA taxes are 0.6% and SUTA taxes are 5.4%. The company is preparing its
payroll calculations for the week ended September 30. Payroll records show the following information for
the company's four employees.
A
B
D
Current Week
Gross Pay
through Sep. 23
$126,800
126,885
1
2
Name
Gross Pay
Income Tax Withholding
Ahmed
$2,500
$198
4
Carlos
1,515
182
Jun
6,650
475
32
Marie
23,700
1,000
68
6
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