Question
The form below shows the amounts that appear in the Earnings to Date column of the employees' earnings records for 10 full- and part-time workers
The form below shows the amounts that appear in the Earnings to Date column of the employees' earnings records for 10 full- and part-time workers in Unger Company. These amounts represent the cumulative earnings for each worker as of October 4, the company's last payday. The form also gives the gross amount of earnings to be paid each worker on the next payday, October 11.
In the state where Unger Company is located, the tax rates and bases are as follows:
Tax on Employees: | ||
FICAOASDI | 6.2% on first $128,400 | |
FICAHI | 1.45% on total earnings | |
SUTA | 0.5% on first $8,000 | |
Tax on Employer: | ||
FICAOASDI | 6.2% on first $128,400 | |
FICAHI | 1.45% on total earnings | |
FUTA | 0.6% on first $7,000 | |
SUTA | 1.8% on first $8,000 |
In the appropriate columns of the form shown below, do the following:
1. Compute the amount to be withheld from each employee's earnings on October 11 for (a) FICAOASDI, (b) FICAHI, and (c) SUTA, and determine the total employee taxes. 2. Record the portion of each employee's earnings that is taxable under FICA, FUTA, and SUTA, and calculate the total employer's payroll taxes on the October 11 payroll.
If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent. Enter the tax rates as decimals, carried out to four decimal places when required.
UNGER COMPANY | |||||||||||
Gross | Taxes to Be Withheld from Employees' Earnings Under | Employer Taxes: Portion of Employees' Earnings Taxable Under | |||||||||
Earnings to | Earnings | FICA | FICA | ||||||||
Employee | Date | Oct. 11 | OASDI | HI | SUTA | OASDI | HI | FUTA | SUTA | ||
1. Weiser, Robert A. | $127,075 | $1,910 | $ | $ | $ | $ | $ | $ | $ | ||
2. Stankard, Laurie C. | 14,990 | 260 | |||||||||
3. Grow, Joan L. | 4,030 | 205 | |||||||||
4. Rowe, Paul C. | 8,175 | 240 | |||||||||
5. McNamara, Joyce M. | 7,450 | 155 | |||||||||
6. O'Connor, Roger T. | 125,500 | 1,790 | |||||||||
7. Carson, Ronald B. | 8,905 | 275 | |||||||||
8. Kenny, Ginni C. | 4,330 | 185 | |||||||||
9. Devery, Virginia S. | 57,020 | 575 | |||||||||
10. Wilson, Joe W. | 3,630 | 245 | |||||||||
Total employee taxes | $ | $ | $ | ||||||||
Total taxable earnings | $ | $ | $ | $ | |||||||
Applicable tax rate (enter as decimals, not percentages) | |||||||||||
Totals | $ | $ | $ | $ | |||||||
Total payroll taxes | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started