The company is preparing its payroll calculations for the week ended August 25.
ID: 2371888 • Letter: T
Question
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:
In addition to gross pay, the company must pay one-half of the $32 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employee's gross pay (at no cost to employees) to a pension fund.
Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Legal Stars pays its employees each week. Its employees' gross pay is subject to these taxes.Explanation / Answer
Employee’s net (take-home) pay $___?___ "
Gross - FIT Withheld - EE (Employee) FICA = NET
I don't see any mention of Sate Income Tax Withheld
"Employer’s FUTA taxes $___?___ "
"FUTA .80 (0.80%) First $7,000"
Look at the Gross YTD (Year To Date). Has the Employee exceeded the $7000? If not, calculate the tax. NOTE: only part of Keisha's pay will be subject to FUTA.
"Employer’s SUTA taxes $___?___"
"SUTA 2.15 First $7,000"
Same as FUTA
If Employee A has a Gross YTD of $6,500 and gets paid $1,200 this payroll, how much is subject to FUTA/SUTA?
7,000 (the limit) - 6,500 (Gross YTD) = 500. So, only $500 of the CURRENT payroll is subject to FUTA and SUTA.
"Employer’s total payroll-related expense for each employee $___?___ "
Once you've gotten all of the ER (Employer Tax) calculated, you just add them for each EE.
Example Chee
"Employer’s FICA taxes for Social Security $24.73
Employer’s FICA taxes for Medicare $5.48
Employer’s FUTA taxes $3.02
Employer’s SUTA taxes $8.13 "
Note how each of the lines says "Employer's"...? Those are the employer's taxes.