unemployment compensation taxes. 2, 2015. Salaries were paid to employees on the ecurity tax, Medicare tax, and federal income tax An employee who is hired in the middle of the h. All required payroll tax reports PR 10-3A Wage and tax statement data on employer FICA tax OB). 2 Ehrlich Co. began business on lauary 2 2015. Salaries were pard last day of each month and social security tax, Medicare lax, and were withheld in the required amts A mployee who is hired in the month receives half the monthly salary for that month. All required payroll were hled, and the correct amount of all ages was remitted by the company W22) could the calendar year. Early in 2016 before he and Tax Statements (FormW be prepared for distribution to employees and for filing with the Social Security Admin istration, the employees' earnings records were inadvertently destroyed. None of the employees resigned or were discharged during the year, and there o changes in salary rates. The social security tax was withheld at the rate of unang Medicare tax at the rate of 1.5% Dataon dates of employment, salary rates, and cm ployees' income taxes withheld, which are summarized as follows, were obtained from personnel records and payroll records: Employee Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Date First Employed Nov. 16 Jan. 2 Oct. 1 Dec. 1 Feb. 1 Mar. 1 Nov. 16 Monthly Salary $ 5,500 4,800 8,000 6,000 10,000 11,600 5,220 Monthly Income Tax Withheld $ 944 833 1,592 1,070 2,350 2,600 876 Instructions 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 2015. arranging the data in the following form: Gross Earnings Federal Income Tax Withheld Employee Social Security Tax Withheld Medicare Tax Withheld 2. Calculate the following employer payroll taxes for the year: (a) social security (b) Medicare; (c) state unemployment compensation at 5.4% on the first $10,000 of each employee's earnings; (d) federal unemployment compensation at 0.8% on the first $10,000 of each employee's earnings: (e) total. Amounts to Be Reported on Wage and Tax Statements (Form W-2) Employee Gross Earnings Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax Withheld Amett Cruz Edwards Harvin Nicks Shiancoe Ward Totals 8,250.00 57,600.00 24,000.00 6,000.00 110,000.00 116,000.00 7.830.00 $ 329,680.00 495.00 3,456.00 1,440.00 360.00 6,600.00 6.960.00 469.80 $ 19,780.80 123.75 864.00 360.00 90.00 1,650.00 1.740.00 117.45 4,945.20 $ Employer Payroll Taxes a. Social security tax paid by employer $ 19,780.80 b. Medicare tax paid by employer 4,945.20 c. and d. SUTA/FUTA Earnings $ 8.250.00 Employee Amett Cruz Edwards Harvin Nicks Shiancoe Ward Total 6,000.00 State unemployment compensation tax 7.830.00 $ 62,080.00 Federal unemployment compensation tax Total employer payroll taxes Pr. 10-3A
