Ehrlich Co. began business on January 2. 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 the following year, 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% on salary 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 Nov. 16 $ 5,500 $ 944 Cruz Jan. 2 4,800 833 Edwards Oct. 1 8,000 1,592 Harvin Dec. 1 6,000 1,070 Nicks Feb. 1 10,000 2,350 Shiancoe Mar. 1 11,600 2,600 Ward Nov. 16 5,220 876 Instructions

Compute the amounts to be reported for the year on each employee's Wage and Tax Statement (Form W-2), arranging the data as follows (round to the nearest cent):

Employee Gross Earnings Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax Withheld 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 employee's earnings, (D) federal unemployment compensation at 0.8% on the first $10,000 of each employee's earnings, (E) total.

Home Insert Page Layout Formulas Data Review View Foxit PDF Cut Arial 10 Wrap Text En Copy Paste 2 Merge & Center Condition Formattin Format Painter Clipboard Font Alignment Number C2 B C D E F GI H J L M N A 1. Amounts to Be Reported on Wage and Tax Statements (Form W-2) an ou 14 15 16 17 18 19 Gross Earnings Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax Withheld Employee 21 23 Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Totals 24 25 26 27 28 29 O CO Arial 10 Wrap Text * Cut Ea Copy Format Painter Paste BU 00 Insert D :: Merge & denter conditional Format Cell Formatting as Table Styles Styles Clipboard E Font Alignment Number C2 A B c D G H J K M N O P 0 2. 29 30 31 32 Employer Payroll Taxes 33 A. Social security tax paid by employer 34 35 B. Medicare tax paid by employer 36 37 C. and D. 38 SUTAJFUTA 39 Earnings 40 41 42 43 44 45 46 47 Employee Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Total State unemployment compensation tax ON Federal unemployment compensation tax 48 49 E. Total employer payroll taxes 50 51 52 53