11 - 3A

OBJ. 2,3 PR 11-3A 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, Medicare 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 20Y9, before the Wage and Tax Statements (Form W-2) could be prepared for distribution to employees and for filing with the Social Security Administra- tion, 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 em- ployees' income taxes withheld, which are summarized as follows, were obtained from personnel records and payroll records: Employee Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Date Employed Nov. 16 Jan. 2 Oct. 1 Dec. 1 Feb. 1 Mar. 1 Nov. 16 Gross Earnings Monthly Salary Federal Income Tax Withheld $ 5,500 4,800 8,000 6,000 10,000 11,600 5,220 Monthly Income Tax Withheld $ 944 833 Instructions 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 20Y8, arranging the data in the following form: 1,592 1,070 2,350 2,600 876 Social Security Tax Withheld Medicare Tax Withheld Employee 2. 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 employee's earnings; (e) total. a. b. Employee e. Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Totals c. and d. Social security tax paid by employer Medicare tax paid by employer Employee Arnett Cruz Amounts to Be Reported on Wage and Tax Statements (Form W-2) Gross Earnings Federal Income Tax Withheld Edwards Harvin Nicks Shiancoe Ward Total SUTA/FUTA Earnings Total employer payroll taxes Employer Payroll Taxes Social Security Tax Withheld State unemployment compensation tax Federal unemployment compensation tax Medicare Tax Withheld [1]