Templin Company pays its employees each week. Its employees’ gross pay is subject to these taxes:
Tax Rate Applied To
FICA — Social Security 6.20% First $94,200
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 12. Payroll records show the following information for the company’s four employees:
Gross Pay – YTD
Gross Pay Income Tax Withholding
Jasper $56,400 $2,500 $1,040
Matilda 93,400 1,750 350
Homer 16,020 600 100
Gertrude 6,070 1,200 220
In addition to gross pay, the company must pay one-half of the $20 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 6% of each employee’s gross pay (at no cost to employees) to a pension fund.
Compute the following for the week ended August 12 (round amounts to the nearest cent):
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. Each employee’s net (take-home) pay.
8. Employer’s total payroll-related expense for each employee.