Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The form shows the amounts that appear in the Earnings to Date column of the employees' earnings records for 10 full- and part-time workers in

The form 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 $147,000
FICAHI 1.45% on total earnings
SUTA 0.5% on first $8,000

Tax on Employer:

FICAOASDI 6.2% on first $147,000
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, 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud examination

Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma

4th edition

538470844, 978-0538470841

Students also viewed these Accounting questions

Question

What is the mass of 1 L of water? Its weight in newtons?

Answered: 1 week ago

Question

What is the balance sheet identity? AppendixLO1

Answered: 1 week ago