| 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 | |
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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 | ||||||||||||
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| 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 | |||||||||
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In addition to gross pay, the company must pay one-half of the $32 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employee’s gross pay (at no cost to employees) to a pension fund. |
| Required: |
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Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal places. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” 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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