Question
This is a tax question.... I am really struggling The form below shows the amounts that appear in the Earnings to Date column of the
This is a tax question.... I am really struggling
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:
FICA?OASDI6.2% on first $132,900
FICA?HI1.45% on total earnings
SUTA0.5% on first $8,000
Tax on Employer:
FICA?OASDI6.2% on first $132,900
FICA?HI1.45% on total earnings
FUTA0.6% on first $7,000
SUTA1.8% 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) 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 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.
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