Accounting Problem 1 answer below »

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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 (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.

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