Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wage and Tax Statement Data on Employer FICA Tax Ehrlich Co. began business on January 2, 2018. Salaries were paid to employees on the last

image text in transcribed
image text in transcribed
Wage and Tax Statement Data on Employer FICA Tax Ehrlich Co. began business on January 2, 2018. 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 2019, 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 carnings 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: Monthly Income Date First Monthly Tax Employee Employed Salary Withheld Arnett Jan, 2 $3,500 $490 Cruz Oct. 1 5,100 918 Edwards Apr. 16 2,600 325 Harvin Nov. 1 2,300 288 Nicks Jan. 16 5,650 1,271 Shiancoe Dec. 1 3,100 481 Ward Feb. 1 6,700 1.441 Required: 1. Determine the amounts to be reported on each employee's Wage and Tax Statement Form W-2 for 2078. Round amounts to the nearest whole dollar and enter all amount as positive values. Gross Federal Income Social Security Medicare Employee Earnings Tax withheld Tax withheld Tax withheld Anett 42.000 490 X $ 2.520 $ 63 X 1. Determine the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 2018. Round amounts to the nearest whole dollar and enter all amounts as positive values. Gross Federal Income Social Security Medicare Employee Earnings Tax Withheld Tax Withheld Tax withheld Arnett 42,000 490 X $ 2,520 $ 63 X Cruz 15,300 918 X Edwards 918 22,100 230 325 X 1,326 Harvin 332 4,600 288 X 276 Nicks 69 64,975 1,271 X 3,899 Shiancoe 975 3,100 481 186 Ward 47 73,700 1,441 X 4,422 1,106 13,547 7 $ 2,822 X 2. Compute the following employer payroll taxes for the year: (a) social security (b) Medicare (9 state unemployment compensation at 5.4% on the first $10,000 or each employee's earnings; (d) federal unemployment compensation at 0.6% on the first $10,000 of an employee's earnings (e) total. Round amounts to the nearest whole dollar and enter all amounts as positive values. (a) 13,547 @ 2,822 X (C) 3,115 X (d) 347 X 19,831 X

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

Step: 3

blur-text-image

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

More Books

Students also viewed these Accounting questions