Wage and Tax Statement Data on Employer FICA Tax

Ehrlich Co. began business on January 2, 20Y8. 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 20Y9, 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%. 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
Arnett	Jan. 2	$3,800		$532
Cruz	Oct. 1	5,600		1,008
Edwards	Apr. 16	2,300		288
Harvin	Nov. 1	2,600		325
Nicks	Jan. 16	5,650		1,271
Shiancoe	Dec. 1	3,400		527
Ward	Feb. 1	6,800		1,462

Required:

1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 20Y8.

Note: Round amounts to the nearest whole dollar and enter all amounts as positive values.

Note: Round amounts to the nearest whole dollar and enter all amounts as positive values. Gross Earnings Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax Withheld Employee Arnett $ 45,600 $ 6,384 $ 2,736 $ 684 Cruz 16,800 3,024 1,008 252 Edwards 19,550 2,448 1,173 293 Harvin 5,200 650 312 78 Nicks 64,975 14,617 3,899 975 Shiancoe 3,400 527 204 51 Ward 74,800 16,082 4,488 1,122 $ 13,820 3,455 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 0.6% on the first $10,000 of each employee's earnings; (e) total. Note: Round amounts to the nearest whole dollar and enter all amounts as positive values. (a) $ 13,820 (b) 3,455 @ (c) (d) (e) $