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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

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 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 personnel records and payroll records:

Employee Date First Employed Monthly Salary Monthly Income Tax Withheld
Arnett Jan. 2 $3,300 $462
Cruz Oct. 1 5,300 954
Edwards Apr. 16 2,200 275
Harvin Nov. 1 2,200 275
Nicks Jan. 16 5,650 1,271
Shiancoe Dec. 1 3,100 481
Ward Feb. 1 6,100 1,312

Required:

1. Determine the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 20Y8. Round amounts to the nearest whole dollar and enter all amounts as positive values.

Employee Gross Earnings Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax Withheld
Arnett $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4
Cruz fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8
Edwards fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12
Harvin fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16
Nicks fill in the blank 17 fill in the blank 18 fill in the blank 19 fill in the blank 20
Shiancoe fill in the blank 21 fill in the blank 22 fill in the blank 23 fill in the blank 24
Ward fill in the blank 25 fill in the blank 26 fill in the blank 27 fill in the blank 28
$fill in the blank 29 $fill in the blank 30

2. Compute 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 employees earnings; (d) federal unemployment compensation at 0.6% on the first $10,000 of each employees earnings; (e) total. Round amounts to the nearest whole dollar and enter all amounts as positive values.

(a) $fill in the blank 31
(b) fill in the blank 32
(c) fill in the blank 33
(d) fill in the blank 34
(e) $fill in the blank 35

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