Wage and Tax Statement Data and Employer FICA Tax

Jocame Inc. began business on January 2, 20Y7. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle of the month receives half the monthly salary for that month. All required payroll tax reports were filed, and the correct amount of payroll taxes was remitted by the company for the calendar year. Early in 20Y8, before the Wage and Tax Statements (Form W-2) could be prepared for distribution to employees and for filing with the Social Security Administration, the employees' earnings records were inadvertently destroyed.

None of the employees resigned or were discharged during the year, and there were no changes in salary rates. The social security tax was withheld at the rate of 6.0% and Medicare tax at the rate of 1.5% on salary. Data on dates of employment, salary rates, and employees' income taxes withheld, which are summarized as follows, were obtained from personnel records and payroll records:

Employee	Date First Employed	Monthly Salary		Monthly Income Tax Withheld
Addai	July 16	$8,160		$1,704
Kasay	June 1	3,600		533
McGahee	Feb. 16	6,420		1,238
Moss	Jan. 1	4,600		783
Stewart	Dec. 1	4,500		758
Tolbert	Nov. 16	3,250		446
Wells	May 1	10,500		2,359

Required:

Round all answers to nearest whole cent. Enter all amounts as positive numbers.

1.  Determine the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 20Y7.

Employee	Gross Earnings		Federal Income Tax Withheld			Social Security Tax Withheld			Medicare Tax Withheld
Addai	$fill in the blank 1		$fill in the blank 2			$fill in the blank 3			$fill in the blank 4
Kasay	fill in the blank 5		fill in the blank 6			fill in the blank 7			fill in the blank 8
McGahee	fill in the blank 9		fill in the blank 10			fill in the blank 11			fill in the blank 12
Moss	fill in the blank 13		fill in the blank 14			fill in the blank 15			fill in the blank 16
Stewart	fill in the blank 17		fill in the blank 18			fill in the blank 19			fill in the blank 20
Tolbert	fill in the blank 21		fill in the blank 22			fill in the blank 23			fill in the blank 24
Wells	fill in the blank 25		fill in the blank 26			fill in the blank 27			fill in the blank 28
						$fill in the blank 29			$fill in the blank 30

2.  Compute 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 0.6% on the first $10,000 of each employee’s earnings; (e) total.

(a)	$fill in the blank 31
(b)	fill in the blank 32
(c)	fill in the blank 33
(d)	fill in the blank 34
(e)	$fill in the blank 35