Problem 11-4A Payroll expenses, withholdings, and taxes L.O. P2, P3 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 $ 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 to a pension fund. Required: Compute the following for the week ended August 25
