Jocame Inc. began business on january 2,2013. 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 payrol taxes taxes was remitted by the company for the calendar year. early in 2014, before the wage and tax satements( form W2) 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% and medicare tax at the rate of 1.5% on salary. data on dates of employment , salary rates, and employees income tax withheld , which are summarized as follows, were obtained from personal records and payroll records.

Employees Date first employed Monthly Salary Monthly Income Withheld

Addai July 16 $8,160 $1,704

Kasay June 1 3,600 533

McGahee Feb 16 6,420 1,238

Moss Jan 1 4,600 783

Stewart Dec 1 4,500 758

Tolbert Nov 16 3,250 446

Wells May 1 10,500 2,359

Instructions:

1. Calculate the amounts to be reported on each employees wage and tax statement (form W2) for 2013, arranging the data in the following form:

Employees Gross Earnings Federal Income tax withheld Social security tax withheld medicare tax withheld

2. calculate the following employer payroll taxes for the year :(a) Social security , (b) medicare, (c) state unemployment at 5.4% on the first $10,000 of each employees earnings, ( d) federal unemployment compensation at 0.8% on the first $10,000 of each employees earnings, (e) total.

3. Please help me determine the SUTA/FUTA earnings of each employee in the included template. Thanks, i just don't understand it.

1.
	Amounts to Be Reported on Wage and Tax Statements (Form W-2)
				Gross		Federal Income		Social Security		Medicare
		Employee		Earnings		Tax Withheld		Tax Withheld		Tax Withheld
		Addai		$44,880		$ 9,372		$ 2,693.00	*	$ 673.00	*
		Kasay		25,200		3,731		1,512.00		378.00
		McGahee		67,410		12,999		4,045.00	*	1,011.00	*
		Moss		55,200		9,396		3,312.00		828.00
		Stewart		4,500		758		270.00		68.00	*
		Tolbert		4,875		669		293.00	*	73.00	*
		Wells		84,000		18,872		5,040.00		1,260.00
		Totals		$ 55,797				$ 17,165.00	*	$ 4,291.00	*
2.
	Employer Payroll Taxes
	a.	Social security tax paid by employer								$ 17,165.00	*
	b.	Medicare tax paid by employer								4,291.00	*
	c. and d.
				SUTA/FUTA
		Employee		Earnings
		Addai		$ 44,880	*
		Kasay
		McGahee
		Moss
		Stewart
		Tolbert				State unemployment compensation tax				59375*5.4%=3208	*
		Wells
		Total				Federal unemployment compensation tax				59375*0.8=475	*
	e.	Total employer payroll taxes								$ 25,137.00	*