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Open Question: How would you calculate health insurance & pension contribution for payroll?
Below on the table, that's what I've gotten so far. But I'm stuck on how to calculate the health insurance and pension contribution. I've provided a link to the image (screenshot) of the table i did if needed.
Problem 10-1A Payroll expenses, withholdings, and taxes
Paloma Co. 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
Gross Pay Income Tax
Name through 8/18 Gross Pay Withholding
Dahlia $ 104,200 $ 3,100 $ 388
Trey 36,470 1,459 160
Kiesha 6,350 1,550 186
Chee 1,016 406 37
In addition to gross pay, the company must pay one-half of the $24 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employee’s gross pay (at no cost to employees) to a pension fund.
Required:
Compute the following for the week ended August 25. (Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Dahlia Trey Kiesha Chee Total
Gross earnings $ 3100 $ 1459 $ 1550 $ 406 $
FICA Social Security taxes 161.20 90.46 96.10 25.17
FICA Medicare taxes 44.95 21.16 22.48 5.89
FUTA taxes 0 0 5.20 3.23
SUTA taxes 0 0 13.98 8.73
Health insurance
Pension contribution
Total payroll expense $ $ $ $ $
http://imageshack.us/photo/my-images/839/payroll.jpg/
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