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Ehrlich Go. began business on January 2, 2015. Salaries were paid to employees on the last day of each month, and social security tax, and
Ehrlich Go. began business on January 2, 2015. Salaries were paid to employees on the last day of each month, and social security 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 payroll taxes was remitted by the company for the calendar year. Early in 2016, before the Wage and Tax Statements (Form W-2) could, 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 personnel records and payroll records: Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 2015, arranging the data in the following form: 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 0.8% on the first $20,000 of each employee's earnings: (e) total
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