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

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 fe 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. Earl- in 2019, before the Wage and Tax Statements (Form W-2) could be prepared for distribution to employees and for filling 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: Date First Monthly Monthly Income Employee Employed Salary Tax Withheld Amett Jan. 2 $3,200 $448 Cruz Oct. 1 5,600 1,008 Edwards Apr. 16 2,600 325 Harvin Nov. 1 2,600 325 Nicks Jan. 16 5,650 1,271 Shiancoe Dec. 1 3,800 589 Ward. Feb. 1 6,400 1,376 Required: 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 2018. Note: Round amounts to the nearest whole dollar and enter all amounts as positive values. Gross Employee Earnings Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax Withheld Arnett Cruz Edwards Harvin Nicks Shiancoe Ward 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) S (b) Amett Cruz Edwards Harvin Nicks Shiancoe Ward 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) (b) (c) (d)

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_2

Step: 3

blur-text-image_3

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

Dipifr Diploma In International Financial Reporting Revision Kit

Authors: BPP Learning Media

1st Edition

150973872X, 978-1509738724

More Books

Students also viewed these Accounting questions

Question

Explain the Neolithic age compared to the paleolithic age ?

Answered: 1 week ago

Question

What is loss of bone density and strength as ?

Answered: 1 week ago

Question

3. How would you address the problems that make up the situation?

Answered: 1 week ago

Question

2. What recommendations will you make to the city council?

Answered: 1 week ago