Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Wage and Tax Statement Data on Employer FICA Tax Ehrlich Co. began business on January 2, 20Y8. Salaries were paid to employees on the

image text in transcribed
image text in transcribed
image text in transcribed
1. Wage and Tax Statement Data on Employer FICA Tax Ehrlich Co. began business on January 2, 20Y8. Salaries were paid to employees on the last day of each month, and social security tax, Medi- care tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle of the month receives half the monthly salary for that month. All required payroll tax reports were filed, and the correct amount of payroll taxes was remitted by the company for the calendar year. Early in 2019, before the Wage and Tax Statements (Form W-2) could be prepared for distribution to employees and for filing with the Social Security Administration, the employees' earnings records were inadvertently destroyed. None of the employees resigned or were discharged during the year, and there were no changes in salary rates. The social security tax was withheld at the rate of 6.0% and Medicare tax at the rate of 1.5%. Data on dates of employment, salary rates, and employees' income taxes withheld, which are summarized as follows, were obtained from person- nel records and payroll records: I Date First Monthly Monthly Income Employee Employed Salary Tax Withheld Arnett Jan. 2 $3,700 $518 Cruz Oct. 1 5.900 1,062 Edwards Apr 16 2.900 363 Harvin Nov. 1 2.100 300 Shanese Dec. 1 3,500 543 Ward Feb. 1 5,600 1,419 Required: 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 20Y8. Note: Round amounts to the nearest whole dollar and enter all amounts as positive values. Gross Federal Income Social Security Medicare Employee Earnings Tax withheld Tax Withheld Tax withheld Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Calculate the following employer payroll taxes for the year: (a) social security; (b) Medicare; (c) state unemployment compensation at 5.4% on the first $10,000 of each employee's earnings; (d) federal unemployment compensation at 0.6% on the first $10,000 of each em- ployee's earnings; (e) total. Note: Round amounts to the nearest whole dollar and enter all amounts as positive values. (a) (b) c) (d) (e)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Culture Audit In Financial Services Reporting On Behaviour To Conduct Regulators

Authors: Dr Roger Miles

1st Edition

1789667755, 978-1789667752

More Books

Students also viewed these Accounting questions

Question

6. How do histories influence the process of identity formation?

Answered: 1 week ago