Wage and Tax Statement Data and Employer FICA Tax

Jocame Inc. began business on January 2. 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 the following year, 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. Compute the amounts to be reported for the year on each employees Wage and Tax Statement (Form W-2).

Employee	Gross Earnings		Federal Income Tax Withheld			Social Security Tax Withheld			Medicare Tax Withheld
Addai	$		$			$			$
Kasay
McGahee
Moss
Stewart
Tolbert
Wells
						$			$

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 employees earnings, (d) federal unemployment compensation at 0.8% on the first $10,000 of each employees earnings, and (e) total.

(a)	$
(b)
(c)
(d)
(e)	$