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Accounting question about employee pay?

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Accounting question about employee pay?

Postby gabrio45 » Fri Apr 20, 2012 10:06 am

Can anyone teach me how to solve these problem? just explain one of them is fine, no need to give me all the answer, i just wanna know the solution. PLEASE!

Legal Stars has four employees. FICA Social Security taxes are 6.2% of the first $106,800 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, its FUTA taxes are 0.8% and SUTA taxes are 2.15% of the first $7,000 paid to each employee. 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.

Compute the following for the week ended August 25.

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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