The form below shows the amounts that appear in the Earnings to Date column of the employees' earnings records for 10 full-time and part-time workers in Ranger Company. These amounts represent the cumulative earnings for each worker as of November 1, the company's last payday. The form also gives the gross amount of earnings to be paid each worker on the next payday, November 8. In the state where Ranger Company is located, the tax rates and bases are as follows: Tax on Employees: FICA-OASDI FICA-HI SUTA Tax on Employer: 6.2% on first $132,900 1.45% on total earnings 0.5% on first $8,000 FICA-OASDI FICA-HI 6.2% on first $132,900 1.45% on total earnings 0.6% on first $7,000 2.8% on first $8,000 FUTA SUTA 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 November 8 for (a) FICA-OASDI, (b) FICA-HI, 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 November 8 payroll. If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. Enter the tax rates as decimals, carried out to four decimal places when required. If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. Enter the tax rates as decimals, carried out to four decimal places when required. RANGER COMPANY Taxes to Be Withheld from Employees' Earnings Under Gross Earnings Employer Taxes: Portion of Employees' Earnings Taxable Under FICA OASDI HI FUTA Earnings to FICA Employee Date Nov. 8 HI SUTA SUTA OASDI 0 1. Watson, Ruth T. $139,000 $1,890 $ $ 0 0 2. Kinder, Ralph A. 14,950 27.41 5.95 5.73 3. Sanchez, Robert T. 4,060 251.72 X 410 395 295 425 4. Carey, Mary C. 8,190 4.28 6,460 6.16 5. Cox, Mason M. 6. Kenni, Jack T. 7. Britmayer, Tim A. 132,700 1,850 26.83 7.11 8,905 490 8. Candi, Mark B. 6,825 325 4.71 9. Boxer, Barbara C. 57,010 1,150 16.68 10. McBride, James W. 3,615 195 224.13 X 2.83 Total employee taxes $ 107.69 Total taxable earnings tivate V $ 5. Cox, Mason M. 6,460 425 6.16 6. Kenni, Jack T. 132,700 1,850 26.83 7. Britmayer, Tim A. 8,905 490 7.11 4.71 8. Candi, Mark B. 6,825 325 9. Boxer, Barbara C. 57,010 1,150 16.68 10. McBride, James W. 3,615 195 224.13 x 2.83 Total employee taxes $ 107.69 Total taxable earnings Applicable tax rate (enter as decimals, not percentages) Totals Total payroll taxes Feedback Check My Work 1. Calculate amount to withhold from each employee's earnings for (a) FICA-OASDI (b) FICA-HI and (c) SUTA and determine the total employee taxes. Use tax rates given. 2. Calculate taxable portion of employees' earnings and enter into each column (consider year-to-date earnings). Sum each column giving total taxable earnings; Multiply by applicable tax rates; total four columns equaling total EMPLOYER payroll taxes. Use tax rates given. Consider OASDI ceiling
