Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed

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_2

Step: 3

blur-text-image_3

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

Accounting Information For Business Decisions

Authors: Loren A Nikolai, Billie Cunningham, John D Bazley

3rd Edition

1111066884, 9781111066888

More Books

Students also viewed these Accounting questions

Question

Are the hours flexible or set?

Answered: 1 week ago